Belgium’s federal government is looking for investors for the 20% stake in Belfius bank that the state wishes to sell. The Federal Holding and Investment Company (SFPIM) issued the official call for investors after the decision was taken during the restricted ministerial committee meeting which convened on Saturday. Interested parties have until next Friday to come forward. Bank of America (BofA) Securities is acting as financial adviser in connection with the sale and the government has opted for a private placement rather than an initial
public offering. Prospective buyers must meet certain criteria. If deemed eligible, they will be informed of the next steps in the sale process. The investment group CVC Capital and the banks ING, Rabobank and Crédit Agricole, among others, have expressed an interest, De Tijd reports. Belfius itself is reportedly considering entering into discussions with wealthy Belgian families with a view to securing a strategic stake. Prime minister Bart De Wever’s government had already announced its intention to sell off 20% of the state-owned stake in
an effort to raise at least €2 billion. The SFPIM will also carry out a study on various future scenarios for insurance firm Ethias by 21 July, with the MR party keen to bring Belfius and Ethias closer together before any sale takes place. Belfius has been preparing its partial privatisation for some time at the government’s request, and its privatisation was even part of the equation during the budget talks. The bank first came into existence back in 2011, following the collapse of several
financial institutions. The Belgian state bought Dexia for €4 billion, with the aim of protecting the bank and savers, and then created two separate entities after Dexia’s exit: Belfius, set on a more solid footing; and a second financial structure established to take on all the toxic assets of the former Dexia Bank Belgium. After the banking sector recovered, rather than selling Belfius, the state demanded a contribution intended to be, in part, compensation for the bailout. Belfius has since established itself as a reliable
bank and partial privatisation is now back under consideration, particularly as public finances come under pressure and Belgium seeks liquidity for the federal budget. “Having nationalised the bank to save it from Dexia’s bankruptcy in 2011, the state considers its rescue mission to be complete,” Mikael Petitjean, a professor at the Louvain School of Management at UCLouvain, told RTBF. “The aim is to ensure the stability of the shareholder base while allowing the state to remain the majority shareholder and retain strategic control of the
bank.” With a net profit of €1.127 billion in 2024 and equity of about €12.2 billion, Belfius’s total valuation can be estimated at about €10 billion, according to Petitjean. By selling part of Belfius, the state will no longer get the dividend it currently receives – totalling €4 billion since 2012 – and its future revenues will be affected as a result. “Another risk, which is more political than financial, is the partial loss of influence over the bank’s strategy,” said Petitjean. “Even while retaining
a majority stake, the state will have to contend with the interests of the new private shareholders, who may have higher profitability requirements.” Belfius customers are not expected to be impacted by the sale.
Belgium, federal government, SFPIM, Belfius, 20% stake sale, private placement, initial public offering, Bank of America Securities, CVC Capital, ING, Rabobank, Crédit Agricole, Ethias, Bart De Wever