Bid of €350m received for beleaguered Depfa Bank
Dublin-based bank to be sold under deal between Hypo Real Estate and EU
Hypo Real Estate Bank chief executive officer Georg Funke, left, shakes hands with Depfa chief executive officer Gerhard Bruckermann at a press conference in Munich, Germany on July 23, 2007. Hypo Real Estate had agreed to buy Depfa Bank for €5.7 billion. It is now looking to sell the Dublin based bank for about €350 million. Photograph: Thorsten Jochim/Bloomberg
Hypo Real Estate Holding, the German lender that received a government bailout, drew offers of as much as €350 million for Dublin-based Depfa Bank. A preferred bidder could be selected within four weeks.
J.C. Flowers, Apollo Global Management and a group led by Third Point each made an offer, and Blackstone Group filed a joint bid with Och-Ziff Capital Management Group it is understood.
“We have received bids which we are evaluating and I can’t comment any further,” Walter Allwicher, a spokesman for Hypo Real Estate, said by phone. Hypo Real Estate, based in Munich, received European Union approval for the bailout in 2011 as Germany injected €10 billion to save the company from collapse. As part of the restructuring, Hypo Real Estate chief executive officer Manuela Better has to sell the Depfa unit, a provider of public-sector finance, by the end of 2014.
Bids submitted by the January 28th deadline ranged from €250 million to €350 million, it is understood.
Depfa had total core assets of €51 billion and a core tier 1 capital ratio, a measure of financial strength, of 20 per cent at the end of the first half of 2013, according to Hypo Real Estate.
Charles Zehren, a spokesman for Apollo at Rubenstein Associates declined to comment. J.C. Flowers declined to comment on its involvement in the process in an e- mailed response to questions. Elissa Doyle of Third Point, Jonathan Gasthalter, a spokesman for Och-Ziff at Sard Verbinnen and Co., Peter Rose, a spokesman for Blackstone, and Gruebel also declined to comment.