PARIS/HONG KONG (Reuters) -BNP Paribas has signed an settlement with China’s Fosun Group to accumulate its round 9% stake in Belgian insurer Ageas for a sum the French financial institution estimates at 730 million euros ($776.87 million).
Ageas and BNP Paribas (OTC:) are very long time companions by way of a joint shareholding in AG Insurance coverage, Belgium’s main insurer. Ageas owns 75% and BNP the remaining 25%.
“Ageas is happy to see that BNP Paribas recognises, by means of this funding, the worth of its partnership for the long run and the potential of the corporate going ahead,” the Belgian insurer stated in a separate assertion.
Final month Ageas dropped plans to purchase Direct Line after the British dwelling and motor insurer turned down a revised 3.17 billion pound ($3.95 billion) takeover bid from the Belgian insurer.
BNP’s assertion on the scale of the stake and worth of the deal differed barely from a separate assertion by Fosun.
Fosun Worldwide stated in a Sunday submitting to the Hong Kong Inventory Alternate that it agreed on April 12 to promote as much as as much as 15,401,253 shares of Ageas, which represents a 8.19% stake within the Belgian insurer, to BNP Paribas Cardif, a subsidiary of the French financial institution, for as much as 670 million euros.
The sale shall be finished by way of three block trades with the final two trades accomplished inside 10 enterprise days after regulatory clearance is obtained or waived, in keeping with the submitting.
The Chinese language firm stated it meant to make use of proceeds of the sale for normal working capital.
“The disposal is a part of the corporate’s effort of streamlining its portfolio and implementing core business-focused technique. It additionally demonstrates the group’s steady willpower on bettering its monetary efficiency and creating most worth for its shareholders,” Fosun stated.
Fosun stated it will nonetheless maintain 1,952,524 shares of Ageas after the sale.
The three firms didn’t instantly reply to Reuters requests for a proof in regards to the discrepancies of their statements relating to the sale.
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