BNP Paribas to acquire Ageas stake from Fosun

BNP Paribas said it will acquire 9% holding for €730m (US$777m), though Fosun HKEX statement suggests 8.19% stake sale.


Bnp paribas to acquire ageas stake from fosun
Bnp paribas to acquire ageas stake from fosun
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Bnp paribas to acquire ageas stake from fosun

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(Re)in Summary

• BNP Paribas said it had agreed to buy a 9% stake in Ageas from Fosun Group for €730m (US$777m), though Fosun HKEX announcement said sale represents a 8.19% stake.
• The purchase will occur in two tranches, with an initial 4.8% of shares acquired immediately and remaining shares purchased following regulatory approvals.
• Ageas operates in nine Asian countries and serves about 29.5m customers in the region.
• Sale is part of Fosun’s efforts to to streamline its operation to focus on core businesses.

BNP Paribas on Sunday announced an agreement to acquire a 9% stake in Ageas from Chinese conglomerate Fosun Group for approximately €730m (US$777m).

The acquisition will be carried out in two tranches with BNP Paribas Cardif — the group’s insurance subsidiary — acquiring 4.8% of the issued shares in the coming days and the balance to be acquired following regulatory approvals, BNP said.

In a filing submitted to the Hong Kong Stock Exchange on Sunday, Fosun confirmed it had agreed to sell a portion of its holdings to BNP, though it disclosed a different sale value and percentage.

Fosun announced the sale of 15,401,253 shares, equating to up to 8.19% of Ageas’s total issued shares, at a value of approximately €670m. The Chinese conglomerate added it will continue to hold up to 1,952,524 shares of Ageas following the completion of the deal.

According to its website, Ageas serves approximately 29.5 million customers in Asia and has operations in nine Asian countries, including the company’s regional office in Hong Kong.

BNP Paribas and Ageas have an existing joint venture, AG Insurance, with BNP’s Belgian unit distributing Ageas products in the country, including life and auto lines of business.

“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 Belgian insurer said in a statement.

The Chinese conglomerate Fosun International, backed by billionaire Guo Guangchang, has been selling assets to reduce its debt load following an acquisition spree. “The disposal is part of the company’s effort of streamlining its portfolio and implementing core business-focused strategy. It also demonstrates the group’s continuous determination on improving its financial performance and creating maximum value for its shareholders,” Fosun said in its Hong Kong Exchange filing.

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