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Belgian KBC sells Centea unit.

(ADPnews) - Mar 4, 2011 - Belgian financial services group KBC Groep NV (EBR:KBC) said today it agreed on the sale of its subsidiary Centea for a total consideration of EUR 527 million (USD 736.3m).

The savings bank will be acquired by the Belgian unit of French bank Credit Agricole (EPA:ACA).

KBC said the deal is part of its strategic refocusing plan that was announced at the end of 2009.

The deal will free up capital of some EUR 400 million, primarily by reducing risk-weighted assets by EUR 4.2 billion, which will boost KBC's tier-1 ratio by about 0.4%. KBC added the gain on the deal is "negligible".

The completion of the deal is pending customary regulatory approval which is expected in the second quarter of 2011.

(EUR 1.0 = USD 1.397)
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Publication:ADP News Belgium
Date:Mar 4, 2011
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