Shareholders okay UBS capital deal

SINGAPORE: The Government of Singapore Investment Corporation (GIC) said on Thursday it will complete its transaction with Swiss bank UBS after the bank’s shareholders approved the deal.
 
Under the agreement, GIC will inject 11 billion Swiss francs ($10.3 billion), giving it a stake of around 9% and making it the largest single shareholder. Another Sfr2 billion will come from an unnamed Middle East investor, UBS has said.

Shareholders voted in favour of the capital hike during a meeting in Switzerland on Wednesday despite fierce criticism of the bank’s chairman Marcel Ospel.

Under the deal announced in December, GIC committed to subscribe to Sfr11 billion worth of mandatory convertible notes that will pay a coupon of 9% until conversion into ordinary shares about two years after issuance, UBS said.
 
Earlier this month UBS said it plunged to its first-ever full-year net loss after losing $18 billion dollars as a result of a crisis in the US subprime or higher-risk mortgage sector which has afflicted banks around the world.