Qatari royals, Luxembourg to buy Dexia unit
Brussels, December 20, 2011
Qatar's royal family and Luxembourg are to buy Dexia's private banking arm Banque Internationale Luxembourg for 730 million euros ($950 million), as part of the Franco-Belgian group's bailout plan.
'Precision Capital, a Qatari investment group, will acquire 90 percent of the stake, the remaining 10 percent will be acquired by the Grand Duchy of Luxembourg,' Dexia said on Tuesday.
Luxembourg-based Precision Capital, owned by members of Qatar's Al-Thani royal family, has previously invested in European banks, among them British lender Barclays in an emergency fundraising three years ago.
In October, Morgan Stanley estimated the value of BIL at 1.0-1.7 billion euros.
BIL's stakes in Dexia Asset Management Luxembourg and RBC Dexia Investor Services will be sold separately. Its portfolio of legacy securities and stakes in Dexia LDG Banque and Parfipar will be transferred to Dexia.
Dexia was bailed out by Belgium, France and Luxembourg in October. -Reuters
More Finance & Capital Market Stories
- Gulf stocks surge as Fed tapering adds fuel to fire
- SABB launches graduates programme
- NBAD names key official for Hong Kong
- Commercial Bank of Dubai obtains $450m loan
- EFG Hermes names group co-chief
- Islamic bond issuance in GCC picking up
- Kuwait budget surplus likely to hit $42.4bn
- Bahrain banking sector on road to recovery
- GCC banks' outlook stable, says report
- GBSA panel names new chairperson