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Generali takes full control of GPH in Eastern Europe

Insurer also to get stake in Russian Ingosstrakh in equity swap

08 January, 11:31
Generali takes full control of GPH in Eastern Europe (ANSA) - Milan, January 8 - Italy-based global insurance and financial products company Generali said Tuesday it had reached a deal to purchase the remaining stake in General PPF Holding (GPH) to take full ownership and management control of one of the largest insurers in the Central and East European market.

Generali is to buy the 49% of share capital in GPH currently held by PPF Group for just over 2.5 billion euros, the company said in a statement.

The transaction is to be made in two stages, with 25% of the shares being acquired by March 28 and the remaining 24% by the end of 2014. The deal includes a no-cash equity swap, with Generali acquiring from PPF Investments its stake in PPF Beta, which indirectly holds a 38.46% interest in the Russian insurer Ingosstrakh and PPF Group acquiring the 27.5% interest held by the Generali Group in the PPF Partners fund manager, run by PPF, and the PPF Partners 1 Fund L.P. shares held by the Generali Group.

"This transaction eliminates all uncertainty over our development strategy in Central and Eastern Europe and the resources required from the Group to put it in place," said Generali Group CEO Mario Greco.

"Today we are one of the leading players in a high-growth area. With full control of GPH, we shall be able to take full advantage of our investment and focus on developing our core insurance business while improving competitiveness and profitability".

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