22 October 2009

Banco Monex in Talks to Sell Operations to Consorcio

By Nathan Gill
Oct. 22 (Bloomberg) -- Consorcio Financiero SA, a Santiago-based financial services provider, is negotiating the purchase of Chile’s Banco Monex, a bank spokeswoman said.

Monex is holding talks with Consorcio about the possible sale of its operations, Claudia Valenzuela said today in a telephone interview from Santiago, confirming an unsourced Diario Financiero newspaper article. No one at Consorcio answered telephone calls seeking comment.

“They are in negotiations,” Valenzuela said. “There is nothing official yet.” When this operation is completed, we will send a statement.”

Net profit for Santiago-based Monex rose 12.9 percent to 509 million pesos ($949,000) in 2008, according to a statement posted on the Web site of Chile’s banking regulator. The bank had one branch and 66 employees at the end of last year, the statement said.

Consorcio, which provides insurance and brokerage services, has completed due diligence on the bank and the two companies may be ready to sign an agreement, Diario reported today, citing industry sources it didn’t identify.

Valenzuela wouldn’t confirm if Consorcio had completed due diligence.