BNP Paribas Sells Remaining Klepierre Stake for $914 Million

  • Klepierre shares fall after bank sells its 6.5% holding
  • Simon Property is biggest owner of French Mall operator

BNP Paribas SA sold its remaining 6.5 percent stake in French property company Klepierre SA at a discount, raising about 829 million euros ($914 million). Klepierre shares fell.

The bank sold 20.5 million shares at 40.50 euros apiece, 5.8 percent lower than Klepierre’s closing yesterday, Paris-based BNP Paribas said in a statement Tuesday. The sale will increase the lender’s core capital level by about 5 basis points, it said. Klepierre fell as much as 5.4 percent in Paris trading, the most since Aug. 24, and was down 4.2 percent as of 9:20 a.m.

In May, BNP Paribas raised about 870 million euros by selling 22 million Klepierre shares. Simon Property Group, the U.S. mall owner, became Klepierre’s largest investor in 2012 and BNP Paribas began cutting its ownership as the lender needed to improve its capital levels following Europe’s financial crisis.

Klepierre owns large retail centers in 16 countries across the European continent and holds a controlling stake in Steen & Strom AS, Scandinavia’s biggest shopping center manager. The company last week reported a 41 percent increase in revenue for the first nine months of the year. Klepierre shares are up 15 percent in Paris this year, giving the company a market value of 13 billion euros.

BNP Paribas is managing the sale of the Klepierre stake with Credit Suisse Group AG and UBS Group AG, it said.

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