Belgian banking and insurance group KBC will divest its private equity unit as part of the restructuring plan required in return for receiving state aid, a spokeswoman for the group said.
The group has secured European Commission approval for the plan, which will cut its risk-weighted assets by 25% and entail no capital increase.
It pledged a sharp downscaling of merchant banking, the sale of private banking and a string of divestments in return for receiving state aid.
“We only announced the main thrust of the plan yesterday, but we have indeed informed the clients of private equity that KBC Private Equity will be divested,” the spokeswoman said.
She added that the group had not yet started talks with potential buyers.