Spain's Sabadell to sell debt recovery unit to Lindorff

MADRID, July 28 Mon Jul 28, 2014 2:34am EDT

MADRID, July 28 (Reuters) - Spain's Banco Sabadell said on Monday says it had agreed to sell its debt recovery business to Lindorff Espana, part of Norwegian credit manager Lindorff, for 162 million euros ($217.6 million).

The deal comes as many international private equity firms and investment groups jostle for a slice of the debt recovery industry in Spain, as banks get rid of soured loans accumulated during the financial crisis.

Sabadell said it would make a 162-million-euro capital gain from the sale. It said the debt recovery unit has also struck a deal to manage its assets for 10 years. ($1 = 0.7444 Euros) (Reporting by Sarah White, Editing by Paul Day)