Dexia finds buyer for insurance subsidiary
(JB) Dexia is to sell its majority stake in the life insurance and pension subsidiary of DenizBank, to MetLife.
The total stake on the table accounts for 99.86% of shares in Turkey-based firm DenizEmeklilik.
Dexia signed the sale agreement with MetLife on Monday for a consideration of 162 million euros.
The agreement also includes a 15-year exclusive right to distribute MetLife's pensions, personal accident and unemployment insurance products through the DenizBank network.
The take-over is expected to be completed before the end of 2011. Dexia was obliged to sell the share under an agreement with the European Commission, which gave the insurance firm a deadline to sell by October 31, 2012.
The deal is expected to bring 119 million euros after taxes into the Dexia pot. Under the agreement, DenizBank will continue to provide its customers with a full range of life, pensions, personal accident and unemployment insurance products.
However, Dexia decline to comment on whether the agreement would affect jobs, saying that DenizBank personnel would be managed by MetLife.