Natixis to sell business lines to parent bank for $3.1 bln
* Natixis will have 2.5 bln euros for acquisitions by Q1
* Will pay 1.5 bln euro dividend if no acquisition done by
* Parent bank BPCE takes over all retail-related businesses
* Natixis seeks to beef up profile as investment bank
By Inti Landauro
PARIS, Sept 12 (Reuters) - French bank Natixis
said on Wednesday it planned to sell several specialised finance
businesses to its parent, unlisted French cooperative lender
BPCE, and use part of the 2.7 billion euros ($3.1 billion) in
proceeds for acquisitions.
"This planned transaction would give Natixis further
financial firepower to invest in its differentiating asset-light
business lines – primarily asset management," Chief Executive
Francois Riahi said in a statement.
Natixis said the deal would leave it with a war chest of 2.5
billion euros for acquisitions over the 2018-2020 period, up
from 1 billion euros previously earmarked, although it currently
has no specific new deals in the works.
The bank has already spent 400 million euros of that amount
on two acquisitions earlier this year, its CEO said.
The French investment bank said it intends to pay
shareholders a special dividend of 1.5 billion euros after the
deal is closed during the first quarter next year if it doesn't
find acquisition opportunities.
Natixis said the sale of assets will allow BPCE to widen the
range of services it offers to its retail customers, while
Natixis will beef up its profile as an investment bank.
Natixis will narrow its focus to asset management, wealth
management, investment banking, payment services and insurance.
It intends to make acquisitions in all those businesses, except
If Natixis were to identify acquisition targets after the
special dividend is paid to shareholders, BPCE would back it
with capital if needed, BPCE's Chief Executive Laurent Mignon
said in a conference call with journalists.
Mignon, Natixis' CEO until June, is also chairman of the
investment bank's supervisory board.
The assets to be sold to BPCE are consumer financing,
factoring, leasing, sureties and guarantees, and securities
Following the transaction, Natixis expects to raise its
target for return on tangible equity in 2020 to between 14
percent and 15.5 percent from a previous target of between 13
percent and 14.5 percent.
The bank will also lift its core equity tier one ratio to 11
percent from 10.5 percent at the end of the second quarter as it
will keep 500 million euros in capital.
($1 = 0.8604 euros)
(Reporting by Inti Landauro; Editing by Leigh Thomas, Mark
Potter and Jan Harvey)
First Published: 2018-09-12 18:45:58
Updated 2018-09-12 20:04:35
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