Dutch financial conglomerate ING has agreed to dispose of its 36.5% % stake in Brazilian joint venture (JV) SulAmérica, to its partner Larragoiti Family, for an undisclosed sum.
Without revealing further terms of the agreement, the Netherlands' insurer said that after completion of the transaction, including a share-swap, a direct stake of nearly 30% in the JV will be held.
The market value of the remaining 30% stake as per the closing share price of 27 February stood at about €620m, which the company plans to divest in future.
In 2002, the Amsterdam-based company formed the JV SulAmérica with Larragoiti Family and successfully managed the growth of the firm for over 10 years.
The divestment of Brazilian JV is part of ING Group's reorganization strategy to offload insurance and investment management operations as agreed upon with the European Commission, after receiving a government bailout in the financial crisis of 2008.
Pending receipt of regulatory approvals, the transaction is likely to complete during the second half of 2013.
SulAmérica manages diverse insurance lines, supported by diversified distribution capabilities including a network of more than 30,000 independent insurance brokers, as of December 2011.
ING provides banking, investments, life insurance and retirement services, with operations mostly concentrated in China, Hong Kong, India, Japan, Malaysia, South Korea and Thailand.
