29.10.2008 – 14:40
Sale process of KfW's shares in IKB closed
Lone Star acquires 90.8% of IKB
- KfW CEO Dr Ulrich Schröder: "Now that the sale to a private investor has been closed, the main objectives of the IKB rescue have been achieved - in spite of the adverse conditions brought about by the financial crisis".
Today in Frankfurt KfW Bankengruppe and Lone Star legally closed the sale of all of KfW's shares in Deutsche Industriebank (IKB). Lone Star thereby acquired 531,314,238 shares, corresponding to 90.8% of IKB.
Dr Ulrich Schröder, CEO of KfW Bankengruppe, commented: "Now that the sale of our shares in IKB to a private investor has been closed, the main objectives of the IKB rescue have been achieved - in spite of the adverse conditions brought about by the financial market crisis - and this chapter is now closed for KfW". Through the rescue measures, a collapse of IKB was prevented and IKB as a bank for small and medium-sized enterprises (SMEs) continues to exist.
The structured, open and non-discriminatory sale process including the selection of the buyer was carried out by KfW in consultation with its Board of Supervisory Directors. On 21 August 2008, the Managing Board of KfW Bankengruppe and Lone Star signed the corresponding agreement in Frankfurt. The sale was, however, subject to further approvals, including that of the European Commission and the German Financial Supervisory Authority (BaFin). These approvals have since been granted, paving the way for the closing of the agreement as planned on 29 October 2008.
Background: Chronology of KfW's shareholdings in IKB Deutsche Industriebank AG, Düsseldorf
1985: KfW initially assumes a stake in IKB of approx. 1% at the request of the German Government because Stiftung Industrieforschung is unable to exercise its subscription rights during a capital increase.
2001: KfW purchases the total share package of approx. 33.2% being offered for sale by Allianz and Munich Re. The aim is to maintain IKB's role as a key provider of SME finance. The purchase is passed unanimously at the end of 2001 by both KfW's Managing Board and its Board of Supervisory Directors.
2003: In connection with the merger of DtA into KfW, KfW's stake increases again by approx. 3.6% through the transfer of shares that had been in DtA's portfolio.
2008: As at 30 June 2008 KfW's stake adds up to approx. 45.5%. A capital increase raises KfW's holdings in IKB to approx. 90.8% and, subject to approval by various bodies and institutions, these shares are to be sold to Lone Star as per an agreement dated 21 August 2008. On 19 September 2008 the Board of Supervisory Directors of KfW Bankengruppe approves the sale. The agreement is closed on 29 October 2008.
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