2023-07-19 14:58:00
July 19, 2023 Today at 4:58 PM
BNP Paribas has sold its 11.8% stake in Royal Park Investments. Ageas and the Belgian State, co-shareholders, took over its shares in Fortis.
Royal Park Investments (RPI) is the vehicle into which a portfolio of subprime loans from the former Fortis bank was transferred during the break-up of Fortis in 2009. Until now it had three shareholders: Ageas (the former holding of Fortis, 44.7%), the Belgian State (43.5%) and BNP Paribas (11.8%). They invested 760 million euros, 740 million euros and 200 million euros respectively in the bad bank.
The trio quickly recouped their investments when Royal Park Investments sold its portfolio of toxic loans in 2013 to US firm Lone Star and Credit Suisse. This has reported 6.7 billion euros. The transaction provided Ageas with €1.04 billion in cash, the Belgian State 1 billion euros and to BNP Paribas 270 million euros.
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The RPI company remained active for manage the disputes it had initiated against financial institutions in the context of the financial crisis. At regular intervals, the vehicle redistributed money to its three shareholders. From now on, it is practically an empty shell: only a legal procedure – like that started at the beginning of the year against the American credit rating agency Standard & Poor’s – could possibly bring something.
Ageas’ stake in RPI increases to 50.67% and that of SFPIM – the financial arm of the Belgian government – to 49.33%.
BNP Paribas considers that the time has come to leave the vehicle. Recently, she sold her 11.8% stake for an unknown amount to her two co-shareholders. Thus, Ageas’ stake increases to 50.67% and that of SFPIM – the financial arm of the Belgian government – to 49.33%. The representative from the French bank to the board of directors of Royal Park Investments resigned.
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