(Tiper Stock Exchange) – BPM desk today signed a binding term sheet with Crédit Agricole Assurances SA (“CAA”) for the establishment of a long-term strategic partnership in bancassurance in the Damage/Protection sector.
The term-sheet provides: theacquisition by CAA of the 65% stake in Banco BPM Assicurazioni and, subject to the repurchase by the Bank of the stake currently held by Cattolica Assicurazioni, of 65% in Vera Assicurazioni which, in turn, holds 100% of Vera Protezione (the “Insurance Companies”) and the launch of a partnership commercial with a duration of 20 years in the Non-Life/Protection sector.
The operation – explains a note – is based on a valuation of 100% of the Insurance Companies equal to Euro 400 million. Consequently, for the sale of 65% of the Insurance Companies CAA will pay Banco BPM a total of Euro 260 million. As usual, the sale price is subject to adjustment following the due diligence and will be paid in cash on the closing date.
Also, they are foreseen earn-out and claw-back hypotheses depending on the achievement of the objectives set by the parties and put and call options for CAA and Banco BPM respectively on the equity investments that will be sold.
The transaction will have a positive impact on Banco BPM’s fully loaded adjusted CET1 ratio estimated at 13 bps. At the same time Banco BPM will maintain a significant pro-rata contribution from the expected profits of the Insurance Companies, as well as benefiting from the flow
commission resulting from the commercial agreement.