CVC weighs stake in Belgian bank Belfius ahead of IPO

European private equity firm CVC CAPITAL PARTNERS PLC is reportedly weighing the purchase of a stake in the state-owned bank Belfius. According to sources familiar with the situation, the government of Belgium is planning to sell between 20% and 30% of the institution to raise capital for increased defense spending. This potential transaction is viewed as a strategic step that could lead to an eventual initial public offering. The Belgian government aims to align its military expenditures with NATO norms, targeting a budget of 2% of its gross domestic product by 2029, up from the current 1.3%. While CVC has shown interest, other potential participants in the share sale could include sovereign wealth funds and institutional investors. Belfius, which was formed in 2011 after the government acquired the Belgian arm of Dexia for 4 billion euros, could be valued at approximately 10 billion euros based on its 2025 net profit projections. This valuation would place the bank at roughly 0.8 times its book value of 12.5 billion euros. In comparison, BGL BNP PARIBAS SA trades at 0.76 times its book value, while ING Groep N.V. and JULIUS BAER GROUP LTD trade at premiums of 1.35 and 1.8 times, respectively. Lazard is currently advising the government on its strategic options, though all primary parties have declined to comment on the matter.