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Financials

Andorra selects J.C. Flowers for Vall Banc sale

MADRID, April 21 (Reuters) - The government of the tiny principality of Andorra, situated between Spain and France, said on Thursday it had accepted an offer of up to 29 million euros ($33 million) from U.S. investment firm J.C. Flowers to buy lender Vall Banc.

Vall Banc groups the legitimate assets and liabilities of defunct Andorran bank BPA which the government took control of in 2015 after the U.S. Department of the Treasury said it was a channel for laundering the profits of international criminal gangs.

The former owners of BPA, the Cierco family, plan to contest the deal, a spokeswoman for the family said. The former owners believe the government intervention was unjustified and are seeking damages from the Andorran government.

Vall Banc will undertake a capital raise of 27 million euros ($30 million) by issuing new shares in order to shore up its capital to meet the regulatory minimum to operate in the country, the Andorran bank restructuring authority said in a statement. ($1 = 0.8854 euros) (Reporting By Carlos Ruano; Writing by Sonya Dowsett; Editing by Elaine Hardcastle)

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