November 3, 2015 / 10:02 AM / 4 years ago

UPDATE 1-BNP Paribas sells Klepierre stake for 829 mln euros

(Adds Klepierre share price drop, analyst comment)

PARIS, Nov 3 (Reuters) - French bank BNP Paribas has sold its 6.5 percent stake in Klepierre for 829 million euros ($914 million) in a deal that increases the property group’s free float and could boost its chances of entering France’s blue-chip CAC 40 index.

BNP Paribas said on Tuesday that it sold the 20.5 million shares through an accelerated private placement to institutional investors at a price of 40.50 euros per share, compared with Monday’s closing price of 43 euros.

Klepierre shares were down 3.9 percent at 41.305 euros by 0939 GMT.

The placement raises the portion of the stock in free float to more than 66 percent from around 60 percent, Natixis analysts estimated, adding that Klepierre could subsequently win a place in the CAC 40 index at the next membership review in December.

BNP Paribas, meanwhile, said the stake sale would boost its core equity Tier 1 ratio by 5 basis points. The ratio stood at 10.7 percent at the end of September.

“This transaction is part of BNP Paribas’s active management of its equity investment portfolio,” the bank said in a statement. “Through this placement, BNP Paribas has sold all of the Klepierre shares it held for its own account.”

BNP Paribas acted as sole global coordinator and bookrunner. Credit Suisse and UBS Investment Bank acted as joint bookrunners. ($1 = 0.9070 euros) (Reporting by Maya Nikolaeva and Alexandre Boksenbaum-Granier; Editing by James Regan and David Goodman)

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