Paris, Brussels, September 22, 2003. Dexia Group, which has owned 50.48% of
Dexia HypothekenBank Berlin (DHB) since September 1995, has reached an agreement
with the Schuppli Group, owner of 49.52% of DHB, in order to take over its stake
in this subsidiary.
This transaction, which is subject to approval by regulating authorities, will
allow Dexia to develop and extend significantly its activity in the field of
local public finance in Germany, and to fully extract the synergies between
this subsidiary and the rest of the group.
Dexia HypothekenBank Berlin finances local authorities, mainly in Germany,
benefiting from its access to the market of AAA rated secured bonds (Pfandbriefe)
thanks to its status of a mortgage bank. Since its acquisition by the group
in 1995, the company has been refocused solely towards this activity and has
stopped any new production in the property sector.
DHB's shareholders' equity at December 31, 2002 amounted to EUR 260 million,
and loans outstanding were EUR 31.3 billion. The bank reported net income of
EUR 20.2 million in 2002.
The financial impact of this transaction will be neutral on the Dexia group's
earning per share (excluding any new development of the activity).