FRANKFURT, May 16 (Reuters) - The German state has offloaded most of its stake in Deutsche Pfandbriefbank, 10 years after the bailout of the property lender’s former parent Hypo Real Estate (HRE).
HRE placed around 22 million shares in Pfandbriefbank (PBB) with institutional investors for 12.95 euros apiece in an accelerated bookbuilding late on Tuesday, according to bookrunners.
HRE said the sale raised around 287 million euros ($339.7 million) and slashed its stake in PBB to 3.5 percent from 20 percent.
It said a long-term institutional German investor, whom it did not name, snapped up 4.5 percent of PBB’s stock in the placement.
Germany bailed out HRE in 2008 and nationalised it in 2009 after the bank was forced to make massive writedowns on its holdings of mortgage-backed securities, which slumped in value after the failure of U.S. investment bank Lehman Bros.
HRE was required to sell PBB as a condition of European Commission approval of the bailout and nationalisation. It floated it on the stock exchange in 2015 but retained a 20 percent stake.
HRE has committed to holding on to its remaining 3.5 percent holding in PBB until at least Nov. 14, it said late on Tuesday.
Shares in PBB fell 2.3 percent in early Frankfurt trade on Wednesday. ($1 = 0.8449 euros) (Reporting by Maria Sheahan Additional reporting by Alexander Huebner Editing by Victoria Bryan)