UBS to sell Brazilian arm for 2.5 billion dollars
Zurich - UBS announced Monday it had agreed to sell its Brazilian financial services business, UBS Pactual, for approximately 2.5 billion dollars to BTG Investments, in an attempt to raise capital.
In a statement the Swiss bank said the sale, which would result in a "small loss," was part of a strategy to reduce its risk profile and improve its balance sheet.
Also, the sale will strengthen by 1.3 billion dollars its Tier 1 capital, which had been slipping in recent months, UBS said. The tier 1 capital ratio is considered an important indicator of a bank's financial strength
The full details of the deal were to be made available in the bank's May 5 first-quarter report.
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