Nationalised Franco-Belgian lender Dexia has terminated talks on seven-month deal to sell its asset management unit to GCS Capital, a Hong Kong-based private equity firm.
In December last year, Dexia signed a sale and purchase agreement with GCS Capital for the sale of Dexia Asset Management by the end of June 2013 at the latest, for a price of 380 millions.
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Although the deal now has clearance from the European Commission, Dexia said it had decided to scrap the SPA on 15 July 2013. The erstwhile buyer had a 10 working-day notice period from that date to close the transaction; that period ends on 30 July 2013.
"This decision does not affect the intention of selling Dexia Asset Management, in order to allow it to pursue its commercial development, while providing a long-lasting situation to its clients and employees," Dexia said in a statement.
Dexia Asset Management has 550 employees and some 80 billion in assets under management.
Dexia, which has been rescued three times, is selling off assets to pay back 5.5 billion in bailout money from the French and Belgian governments.
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By GlobalData
