German shipping lender Bremer Landesbank acceded to demands from its state-based owners to sell out to NordLB for a price of EUR 180m ($201m).
In a statement, NordLB said that, after “intensive” negotiations, the City of Bremen and the Lower Saxony Association of Savings Banks agreed to sell their stake in Bremer.
“The future of (Bremer Landesbank) is thus secured,” NordLB said.
The sale price includes Bremer’s stake in two housing development companies and the logistics firm BLG. Stand-alone, the deal values Bremer at EUR 98m.
Bremer is reportedly facing losses up to EUR 500m on its EUR 6.6bn shipping loan portfolio.
Bremer’s chairman Dr Stephan-Andreas Kaulvers and deputy chairman Heinrich Engelken acknowledged the sale of Bremer Landesbank was distressed in an effort to stanch further losses. Both are resigning their positions.
“The owners have accepted this offer with regret and requested us to stay on board until our successors have been appointed and familiarised with their new positions,” the Bremer chairmen said in a statement.
A statement from the selling shareholders said: “We regret this step and have great respect for this decision.”
NordLB, which itself just sold off a portfolio of shipping loans to private equity firm KKR, said the Bremer brand and its Bremen offices will remain intact. The City of Bremen will have one seat on NordLB’s board and the City of Bremen will be released from its internal guarantor liability. Bremer will continue to make sponsoring and cultural grants to Bremen and Lower Saxony.
