Butterfield sells business back to Bentley Reid Group
(CNS): Butterfield has sold its trust, wealth management and advisory businesses in Hong Kong and its trust operation in Malta back to the original founder the bank said this week. In October 2007, Butterfield acquired the entire share capital of the Bentley Reid Group, a privately held international wealth management company with offices in Hong Kong, Malta and the United Kingdom. Nic Bentley, Deputy Chairman, Butterfield Private Office (HK) Limited founder and former Chairman of the Bentley Reid Group, will reacquire the Malta and Hong Kong businesses.
The bank said that the former Bentley Reid operations in London however, have been successfully integrated with Butterfield’s private banking, asset management and family office businesses in the UK and have served to enhance the Group’s wealth management offering in that jurisdiction. They are not affected by this transaction.
As a result of the sale, in the third quarter Butterfield will take a charge of approximately $7.8 million, including a write-off of intangible assets of $4.2 million. The businesses being sold generated net income of $0.4 million in the first half of 2010.
Brad Kopp, Butterfield’s President & Chief Executive Officer explained the need for the sale.
“As we work to return the Bank to a position of stability and profitable growth, we have decided to focus our resources on a smaller number of key jurisdictions. We look forward to working with Nic Bentley and his team to provide continuity of client services and relationship management to our valued clientele in Hong Kong and Malta and leverage our successful asset management business in the UK run by Rupert Bentley,” Kopp said.
Rupert Bentley, who was CEO of Bentley Reid Group prior to its acquisition by Butterfield in 2007, will remain with Butterfield Bank (UK) Limited in London in his capacity as Head of Asset Management. He will also join the Board of the new Bentley Reid Group. Butterfield Bank (UK) Limited will continue to manage investment portfolios for clients of the new Bentley Reid Group entities.
Category: Business
