Deutsche Pfandbriefbank AG's former parent, Hypo Real Estate Holding GmbH, sold around 22 million shares in the lender to institutional investors for €12.95 per share through an accelerated book building, Reuters reported, citing book runners on the deal.
Hypo Real Estate said it raised roughly €287 million from the sale, reducing its stake in Deutsche Pfandbriefbank to 3.5% from 20%, the newswire reported.
Of the total shares sold, 4.5% were purchased by an unnamed long-term institutional German investor, Hypo Real Estate said, adding that it plans to retain its 3.5% stake in Deutsche Pfandbriefbank until at least Nov. 14.
Hypo Real Estate retained a 20% stake in Deutsche Pfandbriefbank after an IPO held in 2015. Off-loading Deutsche Pfandbriefbank was one of the conditions of the European Commission's approval for the German government's rescue of Hypo Real Estate in the aftermath of the 2008 financial crisis.