Summer is in full swing and heat records have been broken. After a busy first half year, the summer holidays is a good time for reflection. In a short interview, Pat Sharman, Managing Director of KAS BANK UK, looks back on the past six months and shares her expectations for the future.
13 Aug 2019
A lot has happened in recent months, the most important change being CACEIS' offer for all outstanding shares of KAS BANK. How do you look back on this half year?
A lot has certainly happened over the past six months. In February we announced that CACEIS, part of Crédit Agricole, was making a public offer for all shares of KAS BANK. KAS BANK is a unique specialist custodian, with a client focused approach and delivery of exceptional service, supported by a committed and highly experienced team, but the custody market is changing. Scale and balance sheet size are becoming increasingly important factors, and we want to be able to provide our clients with the very best service in all areas - not only now, but also in the future. We believe that CACEIS offers us the ideal opportunity to do so. CACEIS is a European asset service provider with scale and has a very solid balance sheet. With CACEIS, I think we have found an excellent match for a sustainable and exciting future.
The past few months have been dominated by the preparations for the integration. Once the transaction has been completed, we want to hit the ground running, ensuring that we continue to deliver an uninterrupted high standard of service to our clients. I believe the integrated business of KAS BANK and CACEIS will bring many benefits to our clients, not only the scale and solid balance sheet, but also access to wider range of innovative services.
What is the status of the transaction?
The Offer Memorandum was published on the 26th of July. Shareholders have eight weeks, until September 23, to offer their shares under the bid. We have received very positive responses from our shareholders to the offer and we expect to complete the transaction by the end of the third quarter.
How do clients view this change?
Very positive. They understand the benefits of a local specialist with a strong international parent. As mentioned above, the market has changed, and we need to prepare for the future, so we can continue to innovate, deliver exceptional service and meet the future expectations of our clients. I am confident that, as part of CACEIS, we will serve our clients with even greater depth of resources. The combination of CACEIS' broader proposition and the local advice and contact with the KAS BANK experts is essential. In that respect, we are ready to operate under the new name in the near future. The international network, the wide range of innovative services and the investments in IT will all help us to further strengthen and expand our market position.
When will the integration start and what will clients notice?
The integration has already started. We are preparing as much as possible in advance. As soon as the transaction is completed, we will begin the implementation. For both KAS BANK and CACEIS, our clients are our number one priority, and we will do our utmost to ensure that the integration runs as smoothly as possible. The main target is that clients notice as little as possible. This will certainly be the case for day-to-day contact, which remains with the same advisors in Amsterdam. Furthermore, we aim to roll out the new functionalities and expected improvements in services as soon as possible.
CACEIS has explicitly emphasised that our great client partnerships and the positive brand in the UK, Dutch and German markets are unique characteristics that they would like to broaden and deepen even further. The ultimate goal of the partnership is to offer clients the best of both worlds: a one-stop-shop with the international capabilities of CACEIS and the local expertise of KAS BANK.
When can clients take advantage of the wider CACEIS offering?
Upon completion of the transaction, clients can immediately use CACEIS services such as the multiple data solutions, TEEPI file exchange platform, private equity, real estate administration and transfer agency services. We will of course, schedule meetings with our clients to discuss their future needs and introduce relevant CACEIS services.
What is CACEIS' vision for the future?
CACEIS currently has a limited presence in the UK and Netherlands, so both the UK and Dutch markets are key to its future growth ambitions as a leading securities services provider. Not only do we have a strong position in both markets, we also bring knowledge and expertise in the field of pension funds. Our Amsterdam office will become the CACEIS centre of excellence for pension funds and with the ever-changing world of pension funds we are well positioned in the coming years, for growth outside the UK and Dutch pension markets. In terms of activities in Germany the KAS BANK specialist pension fund business adds diversity and value to the well-established German business of CACEIS.
CACEIS has the ambition for a top three position as a securities service’s provider in the European market, and we at KAS BANK look forward to the exciting future ahead for both our clients and employees.