Belgian financial services firm KBC Group has agreed to sell its German unit KBC Deutschland to a group of investors, as part of its commitment to the EU regulators of divesting some assets for having received state aid during the global financial crisis.
The bank will sell the unit, which specializes in corporate banking and financial services for mid-sized German companies, to investors that include Teacher Retirement System of Texas, Apollo Global Management, Apollo Commercial Real Estate Finance and Grovepoint Capital.
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The deal is subject to antitrust and regulatory approval. The parties did not disclose the financial terms of the deal.
The transaction will free up about 0.1 billion ($135 million) of capital for KBC, primarily by reducing risk-weighted assets with no material impact on financial results. This will result in an improvement of KBC’s solvency position with roughly 15bp.
Johan Thijs, CEO of KBC Group, said: "With this deal, the divestment programme KBC has committed to execute is nearly complete. This agreement also affirms KBC Bank Deutschland’s expertise, and will provide continuity to the bank’s staff and customers.’
"At the same time, the agreement allows KBC to continue supporting its home-market corporate customers requiring financial services for their German business activities", Thijs added.
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