KBC Group: Yinren Group acquires Antwerp Diamond Bank from KBC
Press Release KBC -Â Outside trading hours - Regulated information*
Brussels, Antwerp - 19 December 2013
Yinren Group acquires Antwerp Diamond Bank from KBC
KBC has reached agreement with the Shanghai-based Yinren Group for the sale of
its subsidiary Antwerp Diamond Bank (ADB). Financial details of the deal, which
is still subject to regulatory approval, are not being disclosed. In the
meantime and pending closure of the deal, Antwerp Diamond Bank remains committed
to continuing its business activities and serving its customers.
         Under the agreement - and pending regulatory approval and final closure
of the deal - the Yinren Group will acquire 100% of KBC's participation in ADB,
which represents 99.9% of ADB's shares.
         The sale of ADB will have only a negligible upfront impact on the KBC
group's earnings. The deal will free up around 0.1 billion euros of capital for
KBC, primarily by reducing risk-weighted assets, which will ultimately improve
KBC's tier-1 ratio (Basel II) by almost 0.2% (pro forma impact calculated on 30
September 2013).
         Before the deal is closed, part of ADB's loan portfolio - primarily the
higher risk and non-performing loans with a net book value of 0.4 billion euros
(out of a loan portfolio of 1.2 billion euros in total) - will be transferred to
KBC Bank N.V. and put in ordinary run-down. After closure of the deal, KBC will
also provide funding to ADB totalling 0.2 billion euros for a maximum period of
two years on a secured basis.
         The Yinren Group is a diversified enterprise group with activities in
real estate, international trade and the diamond industry. The group has
operations in mainland China, Hong Kong and Brazil. The acquisition of ADB will
allow Yinren to leverage upon ADB's know-how, network and brand reputation in
view of the further development of the Chinese market, and to play a role in the
interaction between the world's main diamond centres (including Antwerp, Mumbai,
Dubai and Hong Kong) and the upcoming centres of the Far and Middle East. The
Yinren Group is now able to add financing of the diamond sector to its scope of
activities. Yinren will provide ADB access to the entire diamond value chain in
Asia and Greater China, in particular.
         Antwerp Diamond Bank (ADB) is a leading market player in providing
finance to the diamond trade and industry, with an established market presence
and widely recognised expertise. The ADB brand, management team and operations
will be maintained and its headquarters will stay in Antwerp. ADB's business
activities in Mumbai, Hong Kong and Dubai will continue and be further
developed.
Johan Thijs, CEO of KBC Group NV commented as follows: 'Because of Antwerp
Diamond Bank's very specific business activity in a niche market, this
divestment turned out to be a challenging project, though one which we have
managed to conclude successfully. Antwerp Diamond Bank is a strong brand and a
leading player in the diamond banking industry, with a long and rich history,
and committed staff. We are convinced that the Yinren Group will develop Antwerp
Diamond Bank's business going forward, securing the future of its staff and
ensuring that quality service will continue to be provided to its customers.'
Pierre De Bosscher, CEO Antwerp Diamond Bank concluded: 'We welcome the Yinren
Group as our new shareholder. The Yinren Group fully supports our customer-
oriented model and strategy and has a valuable long-term strategic outlook. We
look forward to working closely with our new shareholders in further developing
the bank's global capabilities and business plan. We are convinced that our
customers and staff will benefit from the commitment and support the Yinren
Group has shown during the acquisition phase.'
Note for the Editors:
About KBC (www.kbc.com)
KBC is a bank-insurer that focuses on its home markets in Belgium and Central
and Eastern Europe. Its headquarters are located in Brussels (Belgium), the
heart of Europe. The group employs around 37 000 staff and caters for 9 million
customers on its home markets. KBC Group NV is listed on NYSE Euronext Brussels
(ticker symbol 'KBC').
About Antwerp Diamond Bank (www.antwerpdiamondbank.com)
Antwerp Diamond Bank is a specialised bank focusing exclusively on the diamond
and the diamond jewellery sector; it has 75-years of experience and boasts a
solid degree of know-how. It is the second largest diamond bank in the world,
with a network of offices covering all the major traditional and emerging
diamond centres, including Antwerp, Dubai, Hong Kong, and Mumbai. Antwerp
Diamond Bank pursues a strong, well-outlined strategy and offers its customers
high-level tailor-made banking services with a powerful personal approach.
Antwerp Diamond Bank, which is a 99.9% subsidiary of KBC, provides different
types of financial products and know-how at all its branches and representative
offices. The company is based in Antwerp (Belgium) and employs some 160 staff
(106 of whom work in Antwerp).
For further information please contact:
Wim Allegaert, General Manager, Investor Relations, KBC Group NV
Tel. +32 2 429 40 51 E-mail wim.allegaert@kbc.be
Viviane Huybrecht, General Manager, Group Communications/Spokesperson, KBC Group
NV
Tel. +32 2 429 85 45 E-mail pressofficekbc@kbc.be
* This news item contains information that is subject to the transparency
regulations for listed companies
KBC Group NV - Havenlaan 2 - 1080 Brussels - Belgium
Press Release 19-12-2013: Yinren Group acquires Antwerp Diamond Bank:
http://hugin.info/133947/R/1751347/590354.pdf
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