The Board of Directors of the National Agency for restructuring of banks of Andorra (AREB) made a decision to sell “clean assets” of Banca Privada d’Andorra to American company JC Flowers & Co for 29 million euros. New financial structure Vall Banc was established by AREB earlier to separate “clean assets” in Banca Privada d’Andorra.
In its official statement AREB, in particular, reports “the proposal of JC Flowers & Co willl meet all the requirements for optimizing the use of public resources and ensure a reliable business prospects of Vall Banc, and also guarantees the Bank’s customers and keeps the jobs of its employees.” In a statement AREB also says that JC Flowers & Co “has extensive experience in financial management”.
According to the Chairman of AREB Albert Hinojosa, the proposal of J. C. Flowers & Co “shows the interest of international investors to the country, and also it contributes to the strengthening of the Andorran financial system”.
Founded in 1998 by J. Christopher Flowers, the firm is led by an experienced team of senior professionals noted for their investment acumen, financial services expertise, extensive network of global relationships, and ability to execute complex transactions in the dynamic and highly regulated financial services sector. Since inception, the firm has invested over $14 billion in 32 portfolio companies across 14 countries.
From offices in New York and London, the JCF team focuses on building long-term value in its portfolio companies. Operating from a perspective honed through decades of experience, the investment team is able to evaluate investment opportunities efficiently, navigate regulatory complexity, execute complex transactions, and partner with management teams to build stronger, more valuable enterprises.
The firm is currently investing capital from its third fund with total capital commitments of over $2 billion.
According to AREB, the transaction will be fully completed by 1 may 2016. The sum of the initial payment will amount to 7.5 million euros. Clients of Vall Banc will be able to recover fully their deposits, however, after 6 months, there will be certain restrictions.
The “dirty”deposits in Banca Privada d’Andorra will temporarily be kept inside BPA, until the investigation is finished. Information concerning the clients proven in money laundering will be transferred to the competent authorities.