Credit Suisse shareholders will receive a single share of UBS stock for every 22.48 shares currently held in Credit Suisse, according to the merger agreement between UBS and Credit Suisse. The deal was urged by the Swiss government which includes agencies such as the Swiss Federal Department of Finance, the Swiss Financial Market Supervisory Authority (FINMA), and the Swiss National Bank.
This information was published by Credit Suisse in a press release on 03/19/2023:
Credit Suisse and UBS have entered into a merger agreement on Sunday following the intervention of the Swiss Federal Department of Finance, the Swiss National Bank and the Swiss Financial Market Supervisory Authority FINMA (FINMA). UBS will be the surviving entity upon closing of the merger transaction. Under the terms of the merger agreement all shareholders of Credit Suisse will receive 1 share in UBS for 22.48 shares in Credit Suisse. Until consummation of the merger, Credit Suisse will continue to conduct its business in the ordinary course and implement its restructuring measures in collaboration with UBS. The Swiss National Bank will grant Credit Suisse access to facilities that provide substantial additional liquidity. On March 19, 2023, Swiss Federal Department of Finance, the Swiss National Bank and FINMA have asked Credit Suisse and UBS to enter into the merger agreement. Pursuant to the emergency ordinance which is being issued by the Swiss Federal Council, the merger can be implemented without approval of the shareholders. The consummation of the merger remains subject to customary closing conditions.Source: Credit Suisse press release
Shares of Credit Suisse dropped to $0.90 a share in the early hours of trading. At a low of $18.61 a share for UBS stock, 22.48 Credit Suisse shares would be equivalent to $0.83 for a single Credit Suisse share. It would seem that from now on (until Credit Suisse becomes delisted) shares of Credit Suisse would fluctuate in relation to the value of UBS shares. The finalization of the merger is planned for completion by end of 2023.
For this merger to be possible, a special emergency ordinance known as a “Notverordnung” was executed by the Swiss Federal Council.
Credit Suisse Chairman of the Board of Directors, Axel P. Lehmann gave a statement:
“Given recent extraordinary and unprecedented circumstances, the announced merger represents the best available outcome. This has been an extremely challenging time for Credit Suisse and while the team has worked tirelessly to address many significant legacy issues and execute on its new strategy, we are forced to reach a solution today that provides a durable outcome.”Source: Press Release issued by Credit Suisse
Credit Suisse’s press release: click here