GCS Capital announced in December it planned to purchase Dexia Asset Management, the asset management arm of troubled European banking group Dexia, which part owns Ausbil Dexia in Australia, from its parent company, Brussels-based banking group Dexia SA.
However, in a statement last week, Dexia said the share purchase agreement with GCS Capital had been terminated.
This was despite all the required regulatory approvals and third parties’ consents having been obtained, and all conditions precedent to the transaction being satisfied, according to Dexia.
“As GCS Capital has not been able to meet its contractual payment obligations under the share purchase agreement since the initially scheduled closing date of 28 June 2013, Dexia, in line with its announcement on the 24 July 2013, feels compelled to definitively abandon discussions with GCS Capital and to formally terminate the share purchase agreement with GCS Capital with effect from 30 July 2013,” Dexia stated.
Dexia said it will now resume discussions with other parties that have expressed a strong interest in acquiring the asset management franchise.
“Dexia notes with satisfaction that, in a challenging context, Dexia Asset Management remains a competitive franchise that benefits from stable business relationships with its diversified international client base and its long-standing distribution partners,” Dexia said.
“Its teams continue to drive forward the business of Dexia Asset Management while keeping an excellent operational efficiency.”
