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Deutsche Bank completes investment in Craigs

Sunday 15th August 2010

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Deutsche Bank has completed its investment in Craigs Investment Partners, buying up 49.9% of the broking firm for $36.75 million.

The deal, which saw the local unit of the German bank pay $29.92 a share, according to the investment statement and prospectus lodged with the Companies Office last month.

Deutsche Bank replaces Craigs' partner ABN Amro, which sold out last year at a big discount when the Royal Bank of Scotland got out of its New Zealand operations, and will combine the broker's equity and debt capital markets teams with the bank's corporate finance team.

"The opportunity to work closely with Deutsche Bank, one of the leading global investment banks, will help develop our firm over the coming years and position us to take up a wider range of opportunities as they arise," said Craigs managing director Frank Aldridge.

The prospectus did not contain any forecasts for the firm due to the uneven nature of its earnings, though it did judge the outlook to be "good".

Deutsche Bank is not able to lift its stake above the 50% threshold before April next year due to clauses Craigs agreed to with RBS before it exited the business last year.

The board of Craigs will be made up of six of the broking firm's senior staff and six of the bank's people.

 



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