FRANKFURT, Feb 27 (Reuters) - The supervisory board of an ownership vehicle of HSH Nordbank’s public-sector shareholders has approved the sale of the lender to buyout groups Cerberus and J.C. Flowers for around 1 billion euros ($1.2 billion), people close to the matter said.
The HSH HoldCo combines the stakes of the German regional states of Schleswig-Holstein and Hamburg, which own 89 percent in HSH Nordbank, with the holdings local savings banks hold 5.9 percent.
J.C. Flowers separately holds a 5.1 percent stake in HSH Nordbank.
A separate HSH shareholder meeting of the HSH HoldCo was expected to approve the sale later on Tuesday with the final decision to be presented to the public on Wednesday.
While the headline price for the core bank is higher than originally expected, non-performing assets were sold at steep discounts, blurring the bottom line outcome for the sellers.
Following EU demands, the privatisation of HSH needed to be finalised by the end of February.
HSH’s owners declined to comment. ($1 = 0.8170 euros) (Reporting by Klaus Lauer Writing by Arno Schuetze)