November 22, 2018 / 2:36 PM / 2 years ago

Dexia bank receives final bids for German unit - sources

FRANKFURT, Nov 22 (Reuters) - Bailed-out bank Dexia has received final bids for its German unit Dexia Kommunalbank as the Franco-Belgian lender disposes of more of its assets, people close to the matter said.

Germany’s property lender Aareal Bank and public-sector bank Helaba both submitted binding bids by a Tuesday deadline for the bank that has equity of 628 million euros and total assets of 18.9 billion euros, they said.

Aareal, which in September bought peer Duesseldorfer Hypothekenbank, is seen as the strongest contender, the sources said, adding that a deal was expected to be signed by year-end.

Apollo-owned regional lender OLB had also shown interest in the bank, but it was not clear whether it had also submitted a final offer for the bank, which is expected to be sold at a small discount to its book value, the sources added.

Deutsche Bank is organising the sale, they said.

Dexia, Deutsche Bank and the bidders declined to comment.

The Franco-Belgian group, which was bailed out in 2011 when its credit dried up, is still backed by guarantees from the governments of Belgium, France and Luxembourg.

After selling all of its active businesses, the bank that was once the world’s largest lender to municipalities and governments has been left holding a large pile of outstanding bonds and loans which the management team is now unwinding.

Dexia Israel Bank accepted an offer this month to be acquired by Israel Discount Bank for $181 million. (Additional reporting by Andreas Framke Editing by Edmund Blair)

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