Antwerp Diamond Bank Sold to Yinren Group of China
December 22, 13
 Pierre De Bosscher, |
Financial details of the deal, which is still subject to regulatory approval, are not being disclosed. In the meantime, and pending closure of the deal, Antwerp Diamond Bank will continue to carry out business as usual, according to a statement.
Under the agreement, the Yinren Group will acquire 100 percent of KBC’s ownership in ADB, which represents 99.9 percent of ADB’s shares.
ADB is a leading market financier for the diamond trade, particularly in the large Antwerp market. The ADB brand, management team and operations will be maintained and its headquarters will stay in Antwerp. ADB’s business activities in Mumbai, Hong Kong and Dubai will continue and be further developed, KBC said in a statement.
Johan Thijs, CEO of KBC Group NV, commented: “Because of Antwerp Diamond Bank’s very specific business activity in a niche market, this divestment turned out to be a challenging project, though one which we have managed to conclude successfully. Antwerp Diamond Bank is a strong brand and a leading player in the diamond banking industry, with a long and rich history, and committed staff. We are convinced that the Yinren Group will develop Antwerp Diamond Bank’s business going forward, securing the future of its staff and ensuring that quality service will continue to be provided to its customers.”
Meanwhile, Pierre De Bosscher, CEO Antwerp Diamond Bank, said: “We welcome the Yinren Group as our new shareholder. The Yinren Group fully supports our customer-oriented model and strategy and has a valuable long-term strategic outlook. We look forward to working closely with our new shareholders in further developing the bank’s global capabilities and business plan. We are convinced that our customers and staff will benefit from the commitment and support the Yinren Group has shown during the acquisition phase.”
Before the deal is closed, part of ADB’s loan portfolio – primarily the higher risk and non-performing loans with a net book value of 0.4 billion euros (out of a loan portfolio of 1.2 billion euros in total) – will be transferred to KBC Bank N.V. and put in ordinary run-down. After closure of the deal, KBC will also provide funding to ADB totaling 0.2 billion euros for a maximum period of two years on a secured basis.
The Yinren Group is a diversified business, involved in real estate, international trade and the diamond industry. The group has operations in mainland China, Hong Kong and Brazil.
“The acquisition of ADB will allow Yinren to leverage upon ADB’s know-how, network and brand reputation in view of the further development of the Chinese market, and to play a role in the interaction between the world’s main diamond centers (including Antwerp, Mumbai, Dubai and Hong Kong) and the upcoming centers of the Far and Middle East. The Yinren Group is now able to add financing of the diamond sector to its scope of activities.”