PARIS: BNP Paribas has signed an agreement with China’s Fosun Group to acquire around a 9% stake in Belgian insurer Ageas for a sum the French bank estimates at €730mil (US$776.9mil).
Ageas and BNP Paribas are long-time partners via a joint shareholding in AG Insurance, Belgium’s leading insurer. Ageas owns 75%, and BNP owns the remaining 25%.
“Ageas is pleased to see that BNP Paribas recognises, through this investment, the value of its partnership for the long term and the potential of the company going forward,” the Belgian insurer said in a separate statement.
Last month, Ageas dropped plans to buy Direct Line after the British home and motor insurer turned down a revised £3.17bil (US$3.95bil) takeover bid from the Belgian insurer.
BNP’s statement on the size of the stake and value of the deal differed slightly from a separate statement by Fosun.
Fosun International said in a filing to the Hong Kong Stock Exchange that it agreed on April 12 to sell up to 15,401,253 shares of Ageas, which represents an 8.19% stake in the Belgian insurer, to BNP Paribas Cardif, a subsidiary of the French bank, for up to €670mil.
The sale will be done via three block trades, with the last two trades completed within 10 business days after regulatory clearance is obtained or waived.
The Chinese company said it intended to use the proceeds of the sale for general working capital.
The disposal is part of the firm’s effort to streamline its portfolio and implement a core business-focused strategy. — Reuters
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