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在线翻译:
szdaily -> Markets
Legend in European push with BIL deal
    2017-September-4  08:53    Shenzhen Daily

LEGEND Holdings Corp., the Chinese company that owns computer maker Lenovo Group, struck a deal Friday to buy a 90 percent stake in Banque Internationale a Luxembourg (BIL) for 1.48 billion euros (US$1.76 billion) in the biggest takeover of a European deposit-taking bank by a Chinese firm so far.

Legend is acquiring 161-year-old BIL from Precision Capital, an investment vehicle of members of Qatar’s royal family, including former Qatari Prime Minister Sheikh Hamad bin Jassim al-Thani.

Legend’s biggest overseas acquisition is being made through its Hong Kong subsidiary, Beyond Leap Ltd., the company said.

Chinese companies have become increasingly interested in European banks despite the sector’s low profitability.

In May, China’s HNA became the largest direct shareholder in Deutsche Bank, while Fosun holds a 24 percent stake in Portugal’s largest listed bank Millennium BCP.

The BIL acquisition comes amid tightening Chinese restrictions on capital outflow. China is determined to reduce leverage in financial markets and systemic risks and is stiffening regulation on capital outflows that could weaken the yuan. Some active dealmakers have been under the government pressure to scale back foreign activities.

Founded in 1856, BIL is the oldest privately owned bank in Luxembourg, with assets under management of 38 billion euros at the end of 2016, according to the company’s annual report published in June. The purchase by Legend marks a shift from a recent trend in which European banks and wealth managers have sought investments in Asia to drive growth.

“This is an important strategic investment for Legend. Financial services is one of Legend Holdings’ key target industries,” Legend chairman Liu Chuanzhi said in a statement.

He said Legend aimed to support the bank and its existing management to grow BIL into a Luxembourg-based, international banking brand.

“We believe that as a long-term strategic shareholder, Legend can add value to the international business development opportunities and application of financial technology of the bank,” he said.

Legend has, in recent years, been diversifying beyond the sluggish PC sector into other sectors including financial services. (SD-Agencies)

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