Swiss govt makes CHF 1.2 bn on UBS sale
Switzerland said on Thursday it made a CHF 1.2 billion profit on selling the stake it took in UBS in a 2008 rescue plan.Zurich -- Switzerland said on Thursday it made a CHF 1.2 billion (EUR 790 million, USD 1.12 billion) profit on selling the stake it took in its biggest bank, UBS, under an emergency rescue plan in 2008.
The nine percent stake valued initially at CHF 6 billion was part of a state aid and loan package for Switzerland's banking flagship in October 2008 after it fell into trouble as a result of the global financial crisis.
The government order the sale of its 332.2 million UBS shares late on Wednesday, marking its complete disengagement from the still loss-making UBS.
The shares were sold to Swiss and foreign institutional investors for CHF 16.50 each, the ministry said in a statement, netting a profit of CHF 1.2 billion.
"By disengaging completely from UBS, the government entirely recovered its initial investment in the convertible loan to UBS," the ministry said.
"The disengagement will also yield a net profit of CHF 1.2 billion," it added.
The sale was announced just hours after the United States and Switzerland signed an out-of-court settlement on a tax fraud lawsuit the bank was facing in the US on Wednesday.
US justice and tax authorities agreed they would give up legal action in return for UBS disclosing details of 4,450 accounts held by American clients to the US authorities.
AFP / Expatica