Dec. 20 (Bloomberg) -- Luxembourg Finance Minister Luc Frieden said the sale of Dexia SA’s unit in the country is a “good deal” for the bank and for Luxembourg.
Dexia, the French-Belgian lender being broken up after running out of short-term funding, signed an agreement to sell its Dexia Banque Internationale à Luxembourg SA unit for a total of 730 million euros ($950 million). Precision Capital of Qatar will buy 90 percent of the unit, with the Luxembourg government acquiring the rest, the bank said today.
“We have a financially strong investor and that was important,” Frieden said today in a telephone interview with Bloomberg News. “It was important to take out BIL from this group that had a number of structural problems.”
Frieden said Luxembourg agreed to pay 73 million euros for its 10 percent stake.
“We have this way reached our goal as the Luxembourg government to strengthen BIL as a systemic bank for Luxembourg,” Frieden said. “It’s a good deal for Dexia; it’s a good deal for BIL, and it’s especially a good deal for Luxembourg.”
Frieden said he expects regulatory approval by the European Union and Luxembourg in the next few weeks.
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