French multinational investment bank Societe Generale is reportedly about to launch the sale of its asset management arm, Lyxor, in order to boost its financial performance after two disappointing quarters, according to sources familiar with the matter.
According to a report from Reuters this Monday, which cites two unnamed sources who are familiar with the matter, Societe Generale has hired Citigroup C.N to oversee the sale which is expected to take place in the final quarter of this year. Both Citi and Societe Generale have declined to respond to media requests for comment.
Although one of the sources did highlight that no deal was certain, the sale will be aimed at buyers in Europe and the United States. This includes Amundi AMUN.PA, an asset manager in France, and its rival over in Germany, DWS DWSG.DE.
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Societe Generale Board Hasn’t Signed Off on Sale, Source Says
“It’s all been prepared and is ready to start, but the board has yet to sign it off,” the source told Reuters.
The news from today follows the third largest bank in France reporting quarterly losses for two consecutive quarters. In the first quarter of this year, the Group reported a net loss of €326 million. In the second quarter, net loss for the Group was €1.264 million. Therefore, for the first half of this year, the bank recorded a net loss of €1.59 billion.
According to one of the sources, Lyxor could be valued at around $1 billion, adding that the bank has contacted interested parties, alerting them that the sale will commence soon.
At the end of June, Lyxor had around €132 billion of assets under management. In Europe, the asset management firm ranks as the third-largest provider of exchange-traded funds (ETFs), with the investment product representing almost half of its business.