PARIS/HONG KONG (Reuters) – BNP Paribas has signed an agreement with China’s Fosun Group to acquire about 9% of Belgian insurer Ageas for a sum the French bank values at 730 million euros ($776.87 million).
Ageas and BNP Paribas (OTC:) are long-standing partners through their joint stake in AG Insurance, Belgium’s leading insurance company. Ageas owns 75% of the shares, with BNP the remaining 25%.
“Ageas is pleased to see that BNP Paribas, through this investment, recognizes the long-term value of its partnership and the company’s potential for the future,” the Belgian insurer said in a separate statement.
Ageas abandoned plans to buy Direct Line last month after the British home and car insurer rejected the Belgian insurer’s revised £3.17 billion ($3.95 billion) takeover bid.
BNP’s statement on the size of the stake and the value of the deal differed slightly from Fosun’s separate statement.
Fosun International said in a filing to the Hong Kong Stock Exchange on Sunday that it agreed on April 12 to sell up to 15,401,253 shares of Ageas, representing an 8.19% stake in the Belgian insurer, BNP Paribas Cardif, a subsidiary of the insurer. French bank, for up to 670 million euros.
According to the filing, the sale will be completed through three block transactions, with the final two transactions being completed within 10 business days of regulatory approval being received or revoked.
The Chinese company said it intends to use the proceeds from the sale for general working capital.
“The sale is part of the company’s efforts to optimize its portfolio and implement its core business-focused strategy. It also demonstrates the group’s continued determination to improve its financial performance and create maximum value for its shareholders,” Fosun said.
Fosun said it will continue to own 1,952,524 shares in Ageas following the sale.
The three companies did not immediately respond to Reuters requests for clarification about discrepancies in their statements regarding the sale.
($1 = 0.9397 euros)
($1 = 0.8032 pounds)