Caixabank to Sell Stakes in Grupo Financiero Inbursa and Bank of East Asia
04 December 2015 - 10:09AM
Dow Jones News
By Jeannette Neumann
MADRID--Caixabank SA plans to sell two of its holdings to its
parent company in a bid to decrease capital charges that regulators
require for minority stakes.
Spanish and other European banks are trying to stay abreast of
regulators' heightened demands for a stronger financial cushion as
the bruised sector continues to recover from financial crisis.
Caixabank, Spain's No. 3 bank by market value, will sell its
stakes in Grupo Financiero Inbursa and the Bank of East Asia to
parent company Criteria for EUR2.65 billion, or around $2.9
billion. Critera, in turn, will pay Caixabank EUR642 million in
cash and EUR2.01 billion worth of Caixabank shares, the Spanish
lender announced Thursday.
The deal is expected to close in the first quarter of next year
and will bring Caixabank's capital charge for minority stakes to
8.1%, which is below the 10% ratio the lender said it had set as a
goal for yearend 2016.
Write to Jeannette Neumann at jeannette.neumann@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
December 03, 2015 17:54 ET (22:54 GMT)
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