Belgian bank KBC to divest private equity unit as part of bail out

The divestment of KBC Private Equity is in the earliest possible stages and the bank is not looking for a quick sale.  

A spokesperson for KBC said, “As part of the negotiations with the European Commission, KBC Group has to divest certain assets, including KBC Private Equity.  The timeframe for this divestment is sufficiently large to find the best possible solution for all stakeholders.”

KBC Group secured approval from the European Commission for its restructuring plan earlier this week. A government bail out was dependent on the restructure being approved.
KBC will cut its risk-weighted assets by 25 per cent, which includes the sale of its private equity arm.  In return for the agreed restructure, the bank  has received €7bn from the Belgian and Flemish governments.

Founded in 1998, KBC Group deals mainly with retail customers, SMEs and private banking clients with a large presence in Belgium, as well as in Central and Eastern Europe.  

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