HSH Nordbank attracts PE bids

Private equity firms Apollo, Cerberus and JC Flowers submitted bids by the Friday deadline, according to press reports.

JC Flowers already owns a stake in the bank after leading a consortium to jointly acquire WestLB's 24.1% stake in 2006 for a €1.26bn transaction value.  The GP subsequently took part in a capital increase in 2008, in which it is thought to have invested €300m.

In May 2016, the European Commission approved the €3bn capital increase granted to HSH Nordbank by the federal states of Hamburg and Schleswig-Holstein in June 2013 to stabilise the bank.

The decision was based on a commitment to reprivatisation without further state aid, and requires the sale agreements to be signed by February 2018.

The bank generated €173m in pre-tax profit for the first half of 2017. It expects to reduce its holding of non-performing exposures from the financial crisis to €8bn by the end of the year, down from €13.6bn at the end of 2016.

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• Topics
• Buyouts
• Financials
• DACH
• HSH Nordbank
• Germany