Qataris buy Dexia Luxembourg unit for 730 mn euros

20th December 2011, Comments 0 comments

Qatari investors are to buy Dexia Luxembourg, owned by failed Franco-Belgian bank for 730 million euros ($950 million) as they wind up the lender, a statement said on Tuesday.

The Qatari investors through Precision Capital will acquire 90 percent of the shares in Dexia Luxembourg while the Grand Duchy of Luxembourg will hold the remainder, it said, adding that the deal still requires regulatory approval.

Precision Capital is a local company which counts the Qatari prime minister among its board members.

Belgium, France and Luxembourg decided in October to dismantle Dexia, offering guarantees worth 90 billion euros to cover losses and restructuring as the business was closed down after losses of 10 billion euros in the first nine months of 2011.

The group had to be bailed out in 2008 as the global financial crisis broke.

© 2011 AFP

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