KBC is to sell its Luxembourg-based private-banking unit, KBL,
for €1.05bn ($1.41bn) to Precision Capital, a company in Luxembourg
representing a Qatari investor’s interests.
Information on Precision Capital is scarce and
the Qatari investor backing the buy-out is understood to want to
remain anonymous.
Go deeper with GlobalData
The €1.05bn sale price, which includes a €50m
performance-dependent “earn-out” clause, was €300 less than
the Belgian bank had been offered in May by Hinduja Group.
Switzerland-based Hinduja Group had announced plans to buy KBL
for €1.35bn in May 2010, but the potential sale was blocked by
Luxembourg regulator, the CSSF, due to criteria set out in the
European law governing the financial sector.
Sale part of KBC
restructure
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By GlobalDataKBC was required to sell KBL as part of a
restructuring agreement reached with the European Union’s executive
arm, European Commission (EC).
The transaction includes all KBC’s private
banking subsidiaries, as well as KBL’s custody and life insurance
businesses. KBL had €47bn in assets under management as of 30 June
2011.
KBL CEO Jacques Peters said it will work
closely with Precision Capital to tap into new markets, in
particular in the Middle East and Asia.
The headquarters of the KBL brand management
team and operation will remain in Luxembourg after the sale to
Precision Capital.
The KBL sale is expected to be completed in the first quarter of
2012.
