Private equity expected to bid for BayernLB Luxembourg unit

BayernLB has reportedly hired Societe Generale to manage the sale.

The unit, called Banque LBLUX, offers corporate and private banking services and holds €300-400m in equity, indicating how much a sale of the asset could yield. Corporates and private equity houses are expected to submit their bids in the coming month.

The divestment is obligatory for BayernLB, which received €10bn in capital from the state of Bavaria during the financial crisis. The bailout also included an additional €4.8bn risk shield and guarantees worth €15bn from Germany's federal bank rescue fund. Under conditions set by the European Commission, BayernLB has to repay €5bn to avoid paying dividends. The bank is also divesting from a number of real estate holdings in Germany.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Investments
• Benelux
• Financials
• Societe Generale
• BayernLB Private Equity
• Germany
• Luxembourg