A stock market listing of Belfius shares, rather than a private sale, would benefit both the Belgian state and retail investors, representatives of Euronext and the Flemish Federation of Investors told the Chamber’s Finance Committee on Tuesday.
The government has opted for a private placement to sell 20% of the bancassurer, which is currently owned by the Belgian state. A process led by the Federal Holding and Investment Company is under way to select candidates by the end of the year.
The sale is expected to raise €2 billion.
The government has ruled out an initial public offering, arguing that it is more uncertain and would be less likely to attract long-term shareholders aligned with Belfius’s strategy.
Belfius and the Federal Holding and Investment Company defended the plan before the committee. Opposition parties, however, said the choice of procedure was driven above all by budgetary pressure.
They accused the government, which is struggling to contain public debt, of wanting to secure the €2 billion before the end of the year in order to reassure financial markets.
The criticism came from the Socialist Party, the Workers’ Party of Belgium, Ecolo-Groen and Anders.
Some opposition members also questioned the decision to reject a stock market listing. Alexia Bertrand of Anders asked why the government had not chosen what she called the route of “popular capitalism” and why Belgian citizens were being excluded.
Meyrem Almaci of Ecolo-Groen said that, if a partial privatisation was to go ahead, she did not understand why a more democratic route had not been chosen at a time when there was so much savings in Belgium.
The same concern was echoed by the Flemish Federation of Investors, which advises and represents retail investors and investment clubs. Its chief executive, Ben Grangé, urged the authorities to “give Belfius back to the Belgians.”
“We represent the man in the street; a stock market listing is a moment of democracy,” he said. “Why should retail investors not be able to own a bank that they helped save?”
Benoît van den Hove, representing Euronext Brussels, which includes the Brussels Stock Exchange, said market conditions had in fact been highly favourable, supported by high interest rates.
He said European retail investors, including Belgians, had returned to the stock market and that strong enthusiasm had been visible over the past two years.
