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Fortis sells Chinese asset management arm

Fortis sells Chinese asset management arm

The Dutch bank Fortis NV said Thursday it has agreed to sell its 49 percent stake in a Chinese asset management business to Old Mutual PLC for euro165 million (US$244 million) in cash.
The disposal was required in part by European regulators and in part to improve Fortis' solvency, the company said.
Fortis shares have lost two-thirds of their value since it agreed to buy euro24 billion worth of assets as part of consortium that purchased ABN Amro last year. Their decline accelerated sharply last month after the company was forced to take moves to preserve cash _ including suspending the payment of dividends.
Shares fell 2.1 percent euro8.92 (US$13.18) Thursday.
The unit sold, ABN Amro TEDA Fund Management Co, Ltd., has approximately euro2.05 billion (US$3.03 billion) in assets, and is majority-owned by the Chinese city of Tianjin.
"Due to regulatory requirements...we had to sell one of two very successful companies, namely Fortis Haitong or ABN AMRO TEDA Fund Management," said Lex Kloosterman, a manager at Fortis, in a statement.
Fortis said the sale would not significantly impact net profit, but would improve the company's solvency by "approximately half" of the sale price.


Updated : 2021-06-19 12:31 GMT+08:00