Banca Carige has announced that it has agreed to sell two of its insurance businesses to Apollo Management Holdings LP for €310m.
The move was announced after the ECB stress tests revealed that Banca Carige was Italy’s second-worst performer after Banca Monte dei Paschi, having shortfall of €813.4m.
The bank said Carige Assicurazioni SpA and Carige Vita Nuova SpA would be sold for cash that will be paid when the transaction is complete. The agreement will be signed early this week, Carige said. The lender expects the deal to be finished in the first quarter of 2015, after regulatory approval.
In an official statement after the release of the ECB test results, Carige said that it will launch a share sale of at least €500m and that it will put up for sale private-banking and consumer-credit businesses to raise the capital required by the regulators. It has nine months to fill the capital hole.
According to the deal, Carige and Apollo will create a partnership by which the bank will go on distributing the insurance products of Carige Assicurazioni and Carige Vita Nuova through its branches.