Dutch financial giant ING Group purchased the remaining stake in Mexico’s largest insurer from cash-troubled Mexican conglomerate Savia for $791 million, a sale which will help knock down Savia’s $1.33 billion load of debt.
According to a Reuters report, Savia will sell its 45.19 percent stake in Seguros Comercial America to ING, providing the Dutch company a controlling share of almost 87percent in the Mexican insurer.
The timing of the moves comes when Savia is attempting to shed assets and restructure debts to make up for investments in the unprofitable Seminis unit, the world’s largest seed company.
Along with the asset sales, Savia’s financial woes will also be helped by the recent accord with creditors to restructure $310 million in Seminis unit. The deal put December 2002 as the target date for the debt’s maturity, with payments on principal of $35 million this year and $49 million in 2002.
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