BNP Paribas in €1.5 Billion Sale of Klepierre Shares

Cleary Gottlieb advised BNP Paribas in its sale of a 28.7% stake in Klépierre to Simon Property Group for €1.524 billion. The deal was announced on March 8.

This deal is part of BNP Paribas’ adaptation plan to increase its common equity Tier 1 ratio by 100bp to reach 9% on a fully-loaded Basel 3 basis by January 1, 2013. The disposal of 28.7% of Klépierre’s share capital will generate a capital gain of approximately €1.5 billion for the Group and will contribute 32bp to this target.

Simon Property Group’s acquisition will bring together Klépierre’s expertise and European presence with the strengths of the largest commercial real estate company in the United States. BNP Paribas, which has supported Klépierre throughout its development, will own 22.2% of the capital after the deal, and plans to remain a significant shareholder in the company. Therefore, BNP Paribas has committed to keeping this entire stake for at least one year.