Belgian financial group KBC will sell its insurance subsidiary Fidea to private equity firm JC Flowers for 243.6 million euros ($337.75 million), reports Reuters.
(Reuters) – Belgian financial group KBC said it will sell its insurance subsidiary Fidea to private equity firm JC Flowers for 243.6 million euros ($337.75 million).
KBC said the price included 22.6 million euros in pre-completion dividend and was subject to pricing adjustment on closing accounts.
The sale is part of KBC’s agreement with the European Commission to sell off non-core assets in exchage for the 7 billion euros in state aid it received at the height of the credit crisis.
The bank said that, while the transaction would free up 0.1 billion euros in capital, because of reduced risk-weighted assets of 1.8 billion euros, it would have a negative impact on its income statement of 0.1 billion euros.
The group previously sold its private banking arm KBL to Qatari-backed Luxembourg firm Precision Capital for 1.05 bln euros on Oct 10.
After having shelved the sale of its Czech unit CSOB, KBC is in the process of selling its Polish businesses insurer Warta and Kredytbank .
Santander , the euro zone’s largest lender, is said to be interested in buying Kredytbank together with private equity firm Apax.
KBC said it expects the Fidea sale to be completed in the first quarter of 2012.
Credit Suisse, Deloitte and Cleary Gottlieb Steen & Hamilton were involved in the deal on behalf of JC Flowers, while KBC was advised by KBC Securities, Morgan Stanley, Eubelius and Linklaters.