Generali has agreed to buy a 3% stake in Generali Deutschland from a group of private investors, at an initial price of 105 ($137.34) per share, or a total consideration of 171 million ($223.6 million).
The acquisition of further shares will increase the company’s total shareholding in Generali Deutschland to reach 95%, which will enable the company to exercise its right and start the squeeze-out procedure for acquiring the outstanding 4% stake in order to take full equity control of the company.
The transaction is expected to close by the end of the first semester 2014, upon which Generali will retain the entire net result of Generali Deutschland that equal will equal to 504 million ($659.4 million) in 2012.
Mario Greco, the CEO of Generali, said: "The acquisition of the minority interest in Generali Deutschland Holding is consistent with our aim to have full control of all our strategic business units and is part of our plan to simplify the Group. This will be a value-accretive investment which will generate a return above the profitability target outlined in our strategic plan."