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Dexia To Sell Asset Management Division To GCS Capital For EUR 380 Mln

12/13/2012 2:31 AM ET

Franco-Belgian bank Dexia SA (DEX.L, DXBGF.PK) Thursday announced it has signed a share purchase agreement with Hong Kong-based strategic investor GCS Capital for the sale of Dexia Asset Management for 380 million euros, which will be subject to an adjustment at closing.

According to Dexia, the scope of the sale includes full perimeter of Dexia Asset Management that comes under the orderly resolution of the Dexia Group undertaken in October last year.

Finalization of the deal, subject to approval of regulatory authorities and the European Commission, is expected in the first quarter of 2013.

Earlier last month, Dexia had announced that Belgian and French states, which control Dexia, have agreed to pump in 5.5 billion euros of fresh capital to the debt stricken lender, after the bank reported hefty losses and write-downs.

Karel De Boeck, CEO of Dexia Group said, "We actively continue to implement the Dexia Group orderly resolution plan announced in October 2011. This disposal gives Dexia Asset Management an opportunity to continue its commercial development and to expand its current platform into new growth areas."

The company stated that the transaction will not have any significant impact on its consolidated results and will not change significantly its solvency ratios.

GCS Capital has establishments in London and Beijing, and is supported by large institutional investors from Greater China and Qatar.

Last month, the troubled bank Dexia had reported a third-quarter net loss of 1.23 billion euros, reflecting mainly impairments and write-downs related to the sale of assets.

On September 28, Dexia completed divestment of its 99.84 percent shareholding in DenizBank AS to Sberbank and on October 5, the divestment of its 99.906 percent shareholding in Banque Internationale à Luxembourg to Precision Capital.

In Brussels, Dexia closed Wednesday's regular trading at 0.07 euros, down 22.22 percent, on 24.49 million shares.

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by RTT Staff Writer

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