China's Legend Holdings is considering various options, including the potential sale of its 90% stake in Banque Internationale à Luxembourg (BIL), according to sources familiar with the matter. Legend, which is listed on the Hong Kong stock exchange and is a partial owner of Chinese computer maker Lenovo, is collaborating with Goldman Sachs to explore possibilities for Luxembourg's oldest private bank.
BIL's valuation in a sale could range between 2.5 billion euros and 3 billion euros. One potential strategy involves selling the bank’s retail and wealth management units separately.
Representatives for BIL and Goldman Sachs declined to comment, while Legend did not respond to requests for information.
A sale would align with recent trends of Chinese companies disposing of European financial assets. Earlier this month, China's Geely sold its stake in Saxo Bank to Swiss private bank J Safra Sarasin. Last year, Fosun divested its stake in Belgian insurer Ageas and initiated a listing for its Portuguese insurance company, Fidelidade.
Founded in 1856, BIL specializes in retail and corporate banking, as well as wealth management and insurance broking, under the leadership of Chief Executive Jeffrey Dentzer. Legend acquired its stake in the bank from Qatar's royal family in 2017 for a value of 1.48 billion euros. The remaining 10% is owned by Luxembourg's government.
Since that acquisition, BIL's assets under management have increased by 20% to 45.5 billion euros as of its latest results in June last year. However, net income fell to 83 million euros in June 2024, a 20% decline compared to the previous year.