Lone Star To Buy Fortis Toxic Asset Vehicle

May 2 2013 | 9:38am ET

Lone Star Funds and Credit Suisse Group have agreed to buy Fortis' so-called "bad bank."

The hedge fund and bank will pay €6.7 billion for Royal Park Investments, which holds the collapsed Belgian bank's toxic assets. The special-purpose vehicle was set up in 2009 with €1.7 billion of equity from Fortis shareholders, by Fortis, the Belgian government and BNP Paribas.

The Belgian government will get €1 billion from the sale, and Ageas, the insurer left over from the nationalization and breakup of Fortis, will get €1 billion.

"This is another major step forward in simplifying our company and will eliminate the uncertainties linked to the evolution of the value of these assets," Ageas CEO Bart De Smet said.

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