Monday, 16 February 2015
SNS REAAL sells VIVAT Verzekeringen to Anbang (NL)
SNS REAAL announces that it has signed an agreement with Anbang Group Holdings Co. Ltd., a leading Chinese insurance company, for the sale of VIVAT Verzekeringen (REAAL NV).
Under the agreement, Anbang acquires 100% of the shares of VIVAT for a consideration of €150 mln. The solvency of VIVAT will be strengthened to adequate levels through a capital injection.
The total financial commitment may vary due to changes in the IFRS equity between 31 December 2014 and 30 June 2015, the anticipated effective date of the sale. In case of a strong decline in IFRS equity between 31 December 2014 and 30 June 2015, the transaction will not materialize. A sale of VIVAT is expected to be completed in the third quarter of 2015.
Following completion of the sale of VIVAT, SNS REAAL will take the next step in the restructuring process following the nationalization. In consultation with the Dutch State, SNS REAAL has decided to work towards a standalone position of SNS Bank. It is anticipated that the first step in this process will be a transfer of SNS Bank from SNS REAAL to the Dutch State at the time of the sale of VIVAT. The specific conditions and timetable for such a transfer are not yet determined.
As a result of the transaction, the coupon ban imposed by the European Commission on externally placed outstanding subordinated bonds issued by SRLEV has been lifted. However, until a transaction is completed, SRLEV will make use of its optional interest payment deferral right not to pay the coupons on these subordinated bonds.
Gerard van Olphen, Chairman of the Executive Board: “SNS REAAL is pleased to announce the sale of VIVAT to the Anbang Insurance Group. Based in China, Anbang operates globally with activities in North America, Europe and Asia. We welcome the investment of Anbang in the Dutch insurance sector. Through the sale, VIVAT will fulfil an important role in further expanding the insurance activities of Anbang in the Netherlands.”
Source: SNS REAAL