April 17, 2019 / 10:00 PM / a month ago

Austria puts Italian Hypo Alpe Adria up for sale

VIENNA, April 18 (Reuters) - Austria plans to sell the remnants of the former Italian banking unit of failed lender Hypo Alpe Adria, asking potential buyers to submit expressions of interest by May 17, according to a notice to be published in newspapers on Thursday.

The collapse of Hypo Alpe Adria has cost Austria billions of euros. The Alpine republic spun off the Italian banking unit into a separate state-owned holding company in 2014.

It has sold off Hypo businesses in the Balkans and Austria, and is winding down the rest in “bad bank” Heta Asset Resolution.

Hypo Alpe Adria Bank S.p.A. (HBI) held more than 440 million euros ($497 million) in assets at the end of December, of which around 230 million euros were loans to customers and 217 million euros real estate leases, the notice said. Around 150 million euros were due from banks.

HBI also had around 220 million euros of outstanding funding liabilities and 140 million euros of allowances for risks and charges at year-end, the notice, published in the Financial Times and Italian daily Sole 24 ore, said.

The former bank is in the process of transforming into a financial intermediary, which is expected to be finalised before the completion of the sales process, according to the notice.

Expressions of interest should be submitted to Mediobanca, which is acting as the financial adviser to the seller.

$1 = 0.8850 euros Reporting by Kirsti Knolle; Editing by Kirsten Donovan

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