Dexia in talks to sell asset manager unit

City A.M. Reporter
FRANCO-Belgian group Dexia is in talks on a disposal which will mark the near completion of its dismemberment following its virtual collapse in the wake of the financial crisis.

The group, which had expanded to become world’s biggest lender to local authorities before its access to credit dried up and it had to be bailed out by France and Belgium, said it was in exclusive talks on the sale of its asset management unit to a Hong Kong-based investment firm called GCS Capital.

Neither Dexia nor GCS gave many details on the potential deal, but it could be worth about €500m, according to an industry source and previous reports. Dexia has already sold various units including its Belgian retail arm, its Luxembourg-based unit and its Turkish subsidiary to meet regulatory conditions on the state aid it has received.

The Dexia Asset Management unit had €78.7bn (£64bn) of assets under management at the end of June 2012, according to its website. Dexia did not disclose a timeframe in which it expected the sale to be completed.