AXA announced it has entered exclusive negotiations with Ageas for the potential sale of AXA’s Portuguese operations.
These operations include AXA’s entire stake in AXA Portugal Companhia de Seguros SA (P&C business), AXA Portugal Companhia de Seguros de Vida SA (life & savings business) as well as AXA Global Direct Seguros y Reaseguros, the Portuguese branch of its direct operations.
The proposed transaction would value 100 percent of AXA’s Portuguese operations at 197.5 million euros ($211.1 million), representing an implied 1.2x book value multiple as of June 30, 2015.
The net cash consideration received by AXA at completion would amount to 190.8 million euros ($204 million).
“As part of our Ambition AXA strategy, we focus our efforts and allocate our capital in markets with strong long-term growth prospects,” said Jean-Laurent Granier, chief executive officer of the Mediterranean and Latin American region.
“We are convinced that the combination of Ageas with AXA’s operations in Portugal would open new business opportunities by creating a stronger player in this market and would benefit to our customers, employees and distributors,” added Granier.
“I would like to take the opportunity to very warmly thank the Portuguese teams for their continuous engagement and for the commitment to our customers they have always demonstrated over the years,” he said.
The proposed transaction is subject to customary conditions, including completing the information and consultation of the relevant works councils as well as obtaining regulatory approvals, and should be finalized before the end of the first semester of 2016.
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