Ageas announced it has reached an agreement with BNP Paribas Cardif to sell its 33 percent share in the share capital of Cardif Lux Vie S.A. (CLV), for a total cash consideration of €152 million ($172.7 million).
Under the deal, BNP Paribas Cardif also will repay to Ageas €30 million ($34.1 million) for subordinated loans.
Brussels-based Ageas said the divestment of its minority stake in CLV is in line with its strategy to concentrate its efforts on further developing businesses where it holds stronger positions or in growth markets. The sale also offers an opportunity to crystallize the value that has been created over the past years.
In 2011, BNP Paribas Cardif, Ageas and BGL BNP Paribas merged their existing life insurance operations to create the joint-venture Cardif Lux Vie in Luxembourg, which mainly focuses on international wealth management business. As a result of the merger, Ageas became a 33 percent shareholder, while the other 66 percent of CLV’s shares are held by BNP Paribas Cardif and BGL BNP Paribas.
The transaction, which is subject to regulatory approval, is expected to close at the latest during the first quarter of 2019.
The divestment is expected to generate a capital gain of €39 million ($44.3 million) for Ageas, which said the transaction will also have a positive impact on the group Solvency II ratio of approximately 7 percent, based on the position as at the end of June 2018.
“I would like to take this opportunity to thank the management team and staff of CLV, as well as our joint-venture partners for the excellent cooperation over the past seven years,” commented Bart De Smet, CEO of Ageas.
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