SYDNEY -- Banque Populaire Group has sold a stake in Australia's
Bank of Queensland for 352 million Australian dollars (US$363
million), taking advantage of strong performance by the nation's
banking stocks.
The French co-operative was Bank of Queensland's largest single
shareholder prior to Tuesday, with a stake of 8.7% held through
entity BRED Banque Populaire. It also had a 2.7% stake held through
Paris-based asset manager DNCA Finance SA, which is half-owned by
private-equity firm TA Associates.
The stock sold at A$9.80, a 2.3% discount to Bank of
Queensland's closing price of A$10.03.
Bank of Queensland shares had reached their highest level since
2011 earlier Tuesday. The stock has risen 36.5% this year.
Earlier this month, the lender reported first-half net profit of
A$100.5 million, compared with a A$90.6 million loss a year
earlier, including a write-down on commercial real-estate
loans.
"This transaction ensues from an asset reallocation decision as
part of the normal management of our investment portfolio," Bruno
Lorthiois, a spokesman for BRED Banque Populaire, told The Wall
Street Journal. He added that DNCA acts as an asset manager for an
investment vehicle used by BRED.
Shares in Australian banks, which are heavily weighted in the
nation's benchmark S&P/ASX200 index, have performed well,
leading investment managers, including Schroders PLC, to question
whether they are overvalued.
But many investors, who seek stable and sizable dividend income,
believe they aren't. After reporting strong interim results
Tuesday, Australia and New Zealand Banking Group Ltd. jumped 5.8%
to close at A$31.84 a share.
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