BUSINESS
10/10/2011 06:46 EDT | Updated 12/10/2011 05:12 EST

Belgium's KBC Group sells private banking division to Qatari buyer for 1.05 billion euro

DUBAI, United Arab Emirates - Belgian bank KBC Group says it has agreed to sell its private banking division to a Qatari buyer for just over 1 billion euros.

The bank said Monday it will sell the KBL European Private Bankers subsidiary to Luxembourg-based Precision Capital, which it says represents the business interests of an unnamed Qatari investor.

Precision agreed to pay 1.05 billion euros ($1.41 billion) for the firm, though 50 million euros of the total depends on the bank's performance.

KBL EBP is based in Luxembourg and has operations in nine European countries.

The deal comes amid speculation Qatari buyers might also be in talks to buy the Luxembourg unit of troubled Franco-Belgian bank Dexia.