July 24, 2014 / 10:17 AM / in 3 years

BayernLB agrees to sell unit MKB to Hungary

FRANKFURT, July 24 (Reuters) - German state-backed lender BayernLB said on Thursday it agreed to sell its Hungarian unit MKB to the Hungarian government to comply with regulatory demands.

Hungary will pay 55 million euros ($74 million) for MKB and in return BayernLB will waive 270 million euros of receivables due from the unit, BayernLB said in a statement.

It expects the deal to close in September.

The European Commission ordered BayernLB in 2012 to restructure and sell some businesses as a precondition for approving state aid for the German regional lender. BayernLB ran into trouble in 2008 after risky investments turned sour.

The chief executive of Hungary’s biggest bank OTP had said in December that the bank was interested in any lender that could come up for sale including MKB.

$1 = 0.7421 Euros Reporting by Maria Sheahan; Editing by Kirsti Knolle

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