Yahoo Finance UBS Group (UBS) Plans Redemption on Funds Hit by Greensill
UBS Group AG UBS announced that Credit Suisse Supply Chain Finance Funds have made an offer to redeem fund units. The company will return 90% of the money invested in Credit Suisse funds linked to the collapse of Greensill Capital. This is part of the effort being undertaken by the Swiss bank to resolve Credit Suisse's difficulties.
Investors in the Credit Suisse Supply Chain Finance Funds may choose to redeem 90% of the net asset value determined on Feb 25, 2021. The offer commenced on Jun 17, 2024, and will be open until Jul 31, 2024. Fund investors will get information about the redemption offer from their custodians and should consider the terms and disclosures aligned with an offer.
With this offer, fund investors should expect a high level of financial recovery and an expedited exit from their stakes. In contrast to payouts made throughout the ongoing recovery process, the offer will provide an early withdrawal from fund investments. UBS Group plans to source the offer by purchasing units of the feeder sub-funds.
The offer is not anticipated to materially impact UBS Group's financial performance or CET1 capital ratio, taking into account the provisions incurred in relation to the purchase of Credit Suisse.
A provision of approximately $0.9 billion is anticipated to be recorded by the company on a consolidated basis in second-quarter 2024. As a stand-alone basis, no significant effects are anticipated for UBS AG.
While UBS Group seeks to resolve a contentious legacy issue, the lender continues to face legal claims linked to the Greensill saga. The increased provision will likely impede the company's bottom-line growth in the near term.
In the past six months, UBS’ shares have gained 1.8% compared with the industry’s growth of 7.5%.
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Currently, UBS Group carries a Zacks Rank #2 (Buy).
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The Zacks Consensus Estimate for ING’s current-year earnings has been revised 4.7% upward in the past 60 days. ING’s shares have gained 9.4% in the past six months. The stock carries a Zacks Rank #2.
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