EFGXY EFG International AG (PK)

ZURICH—BSI SA, the Swiss private bank acquired by Brazilian bank BTG Pactual SA just five months ago, before a corruption scandal engulfed BTG's chief executive, has been sold to Zurich-based EFG International for 1.33 billion Swiss francs ($1.34 billion).

EFG International said Monday said BTG will hold a 20% stake in the new, combined entity, which now plans to raise an additional 750 million francs in fresh capital. The deal will create one of the largest private banks in Switzerland, with total assets under management that place it behind only a few other players including UBS Group AG, and Credit Suisse Group AG, the bank said.

The purchase price includes 975 million in cash, and 52.6 million shares in EFG based on their closing price on Friday, EFG said.

Last September, BTG completed its purchase of Lugano-based BSI from Italian insurer Assicurazioni Generali SpA for 1.25 billion francs.

However, in November, BTG's former CEO André Esteves was arrested on allegations that he sought to buy the silence of a witness whose testimony could implicate him in a corruption scandal at state-controlled oil company Petrobras.

Mr. Esteves has denied the allegations through his lawyer. BTG has been selling assets to raise cash and restore the confidence of investors.

The Wall Street Journal has reported previously that BTG had been seeking about $1.95 billion for BSI.

Write to John Letzing at john.letzing@wsj.com

(END) Dow Jones Newswires

February 22, 2016 03:15 ET (08:15 GMT)

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