Dexia says closes DenizBank sale, books 744 million euro loss
BRUSSELS (Reuters) - Bailed out Franco-Belgian lender Dexia (DEXI.BR: Quote) said on Friday it had finalized the sale of its Turkish banking unit DenizBank DENIZ.IS to Russia's Sberbank (SBER.MM: Quote) for around 3.02 billion euros ($3.88 billion).
The price included a sum equivalent to the increase in DenizBank's net asset value between January 1 and September 28.
Dexia said it would book a 744 million euro loss on the sale in the third quarter, while its core Tier 1 and Tier 1 capital would rise by 638 million euros.
The sale would reduce Dexia's balance sheet by 18 billion euros and would be used to reduce the exposure of Belfius, Dexia's former Belgian banking arm, to Dexia.
The figures are broadly in line with those published in June when the deal was announced for the first time.
Fast-growing DenizBank is a unit of Dexia (DEXI.BR: Quote), which was forced to divest businesses after its state rescue last October by Belgium, France and Luxembourg.
The company, once the world's biggest municipal lender, is set to become a portfolio of bonds and loans with guarantees from the three countries to cover its funding.
Dexia still needs to spin off its asset management arm and to gain European Commission approval for its restructuring, which includes guarantees to cover its borrowing from Belgium, France and Luxembourg.
(Reporting By Philip Blenkinsop)
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