(Reuters) — U.S. private equity firm Lone Star Funds is making a renewed push to sell corporate bank IKB, one of the highest-profile German casualties of the financial crisis, according to a person close to the matter.
IKB announced the sale of its leasing division to investment funds managed by HPS Investment Partners on Thursday, part of a reorganisation that includes buying back a hybrid bond to prepare IKB for a new owner.
The lender has received indicative offers from banks and Chinese bidders, the person said, speaking on condition of anonymity. Final bids are due by the middle of August.
The sale price of the leasing unit was not disclosed but the source said it was bought for 210 million euros ($240 million).
Lone Star declined to comment.
Lone Star has made multiple attempts in recent months to sell the bank, which specialises in offering financial services to medium-sized German companies.
IKB, which required several bailouts from the German state and development bank KfW when its investment vehicles ran into funding problems in 2007, was delisted last year.
Following the rescues, IKB was taken over by KfW, which sold it to Lone Star in August 2008 for 137 million euros. By late 2012, IKB had returned all of the 12 billion euros in state guarantees it received from Germany’s bank bailout fund.
In 2014, Lone Star tried to find a buyer for the bank but the results from a European Central Bank stress test, which IKB barely passed, deterred buyers. ($1 = 0.8755 euros)