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Business

Qatari investors to buy Dexia's Luxembourg unit

Text by News Wires

Latest update : 2011-10-10

Qatari investors linked to the royal family have agreed to buy Dexia BIL, the Luxembourg arm of the troubled Franco-Belgian bank, Luxembourg said on Monday, shortly after Brussels announced it would bail out the bank's Belgian arm.

AFP - Members of Qatar's royal family have agreed to buy Dexia BIL, the Luxembourg unit of fallen Franco-Belgian bank Dexia, Luxembourg Finance Minister Luc Frieden said on Monday.

"A family in a Qatar financial group is ready to buy the bank," Luc Frieden told reporters.

The announcement came hours after Belgium, France amd Luxembourg intervened and decided to break up the Dexia group after it became the first bank to be taken down by the eurozone debt crisis.

The deal for Dexia BIL was revealed shortly after Belgium's KBC bank announced its own agreement to sell a Luxembourg unit, KBL, to a Qatari state intestment group, Precision Capital, for 1.05 billion euros ($1.41 billion).

"It is a good thing for the financial market because the two banks are complementary," said Frieden.

Frieden did not say how much Dexia BIL -- a portfolio management and retail bank -- was being sold for but he indicated that the Luxembourg government would take a minority stake, costing 150 million euros.

The deal is expected to close by the end of October, he added.
 

Date created : 2011-10-10

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