On February 25, 2019, we published a joint press release from CACEIS and KAS BANK on a recommended offer by CACEIS on all KAS BANK shares. Below we have answered six frequently asked questions received from our clients.
12 Mar 2019
Six frequently asked questions
1. How do you mitigate any operational impact and ensure continuity for your clients?
As CACEIS and KAS BANK are complementary across clients, markets and knowledge, we do not foresee any problems or operational impact to our clients. Furthermore, KAS BANK operates its own IT systems and operations on a standalone basis, which enables a progressive migration and integration with limited time constraints. Finally, CACEIS has broad experience with migration/ integration projects. Among others, CACEIS recently integrated HSBC France Fund depositary and Fund administration activities, and took over all the operational activities linked to the fund business of Bank Edmond de Rothschild Luxembourg with the transfer of more than 100 employees. When the acquisition closes, we will become a branch of CACEIS, operating our business and taking care of our clients, just as we do now, backed by the support of a large and strong parent company.
2. Will you continue to support all current client sectors of KAS BANK?
Yes, all current clients of KAS BANK will be onboarded by CACEIS. The combination of CACEIS and KAS BANK will continue to serve both institutional investors and financial institutions.
3. Will you continue to service clients locally (Germany, The Netherlands and The United Kingdom)?
Yes, we will continue to service clients locally and nothing will change in this respect for our clients as a result of the acquisition. Our client management teams remain located in the three home markets and our service experts will serve clients from our Amsterdam office. CACEIS operates various expertise centres in Europe (e.g. Paris, Luxembourg and Dublin) and Amsterdam will be added to this network.
4. What are the key benefits to your clients?
The first major advantage for clients is CACEIS’s strong balance sheet and its solid capitalisation. CACEIS is one of the bigger players in Europe in the field of custody and asset servicing, with EUR 2,633 billion of assets under custody and EUR 1,695 billion of assets under administration. CACEIS also has a good credit rating, both Fitch and S&P A+. CACEIS has the support of its parent company, Crédit Agricole, the 9th largest bank in the world.
The combination will allow KAS BANK to expand its service offering and provide services such as private equity, real estate administration and Transfer Agency services. CACEIS is also located in Hong Kong and Canada and therefore provides follow-the-sun processing.
5. Will the current contract and commercial terms with KAS BANK remain?
Everything will remain as is until the acquisition is finalised, which is expected in the third quarter of this year. After completion of the acquisition and the integration of KAS BANK within CACEIS, we will become a branch of CACEIS and act as one counterpart. Existing contracts and agreements will remain in force after the acquisition by CACEIS. The contracts will be honoured by both CACEIS and KAS BANK. The terms and conditions stipulated in the existing contracts and agreements will remain in force (e.g. English or Dutch law).
6. How will you keep me informed between now and the close of the offer and during the migration period?
With the publication of the Offer Memorandum, the offer period started on 29 July. The offer period runs until 23 September. If everything goes according to plan, the acquisition is expected to be completed in the third quarter of 2019. We will proactively inform clients of any important developments. You can contact your client manager at any time should you have any questions.
The frequently asked questions addressed above are intended to provide general information to our clients. If you have further questions, please contact your Client Manager.