Fosun sells Ageas shareholding in €730 million deal

Agreement inked for stake transfer

Fosun sells Ageas shareholding in €730 million deal

Mergers & Acquisitions

By Terry Gangcuangco

BNP Paribas is acquiring Fosun Group’s 9% shareholding in Belgian insurer Ageas for around €730 million.

“Ageas and BNP Paribas have been partners for many years via the joint shareholding of Ageas (75%) and BNP Paribas Fortis (25%) in AG Insurance and with BNP Paribas Fortis being a longstanding distribution partner to the group’s Belgian insurance activities,” Ageas highlighted when the signing of the agreement was announced on Sunday.

“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 transaction’s price tag was revealed by BNP Paribas in a separate announcement over the weekend.

The international bank noted: “The acquisition will be performed in two tranches: 4.8% of the issued shares in the coming days [and] the balance following the receipt of mandatory regulatory approvals.

“The total consideration is estimated [at] approximately €730 million, corresponding to a marginal impact on BNP Paribas Group’s Common Equity Tier 1 ratio of approximately two basis points.”

Ageas – which recently decided not to make an offer after failing to initiate dialogue with the board of British insurer Direct Line Group – operates in Belgium, the UK, Portugal, Türkiye, China, Malaysia, India, Thailand, Vietnam, Laos, Cambodia, Singapore, and the Philippines through subsidiaries and long-term partnerships.

Meanwhile BNP Paribas, speaking about its existing alliance with Ageas, said: “BNP Paribas Group, through BNP Paribas Fortis, benefits from a partnership with Ageas, through AG Insurance (AGI)... This partnership is materialised by an exclusive distribution agreement for life and non-life insurance between AGI and BNP Paribas Fortis and by a stake of 25% (plus one share) held by the latter in AGI.

“BNP Paribas Group acquisition of a minority stake in Ageas does not modify any term of this historic and strategic partnership.”

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