UBS says that it is looking to sell its stake in Julius Baer.

The firm’s lock-up agreement related to its Julius Baer stake expires at the end of Friday. UBS currently holds 20.7% of Julius Baer as a financial investment. “As the stake is not strategic in nature, UBS will now start looking at divestment options,” it said.

UBS has held the 20.7% stake since December 2005, when Julius Baer agreed to buy the private label banks, Banco di Lugano, Ehinger & Armand von Ernst and Ferrier Lullin, together with specialist asset manager GAM. As part of the transaction, UBS agreed to certain lock-up obligations.

At current market prices, proceeds from a disposal would be more than 4.1 billion Swiss francs, which corresponds to a pre-tax capital gain of roughly CHF 2.1 billion.

Gains from the Julius Baer stake will be used to buy back shares in the coming months as part of the 2007/2010 share repurchase program announced on March 8, it added.