Chinese conglomerate Fosun eyes take over of Ageas, Belgium’s largest life insurance provider
Shanghai-based company already owns 3pc stake in insurer with a market cap of US$11 billion
Chinese conglomerate Fosun International, one of the country’s biggest buyers of assets and companies globally, plans to extend its presence in Belgium with the takeover of Ageas, its biggest life insurance provider.
The Shanghai-based company is in discussions with the financial advisers of Brussels-based Ageas, which has a market capitalisation of €9.4 billion (US$11 billion). Fosun already holds about 3 per cent of Ageas stock, while Ping An Insurance (Group) Company, another mainland conglomerate, is its largest shareholder with a 5 per cent stake.
“We have had an initial discussion. But the talks are not yet at a stage where we can approach the insurer’s management,” said a source familiar with the matter. “Fosun prefers to take a controlling stake if the deal goes ahead.
“But Ageas’ share price rose after the news was leaked, and this could deter Fosun’s investment desire,” said the source. Fosun declined to comment on the matter.
Vikram Gandhi, a research analyst at French banking group Société Générale, however, said: “We value Ageas at €47 per share versus €43.66 per share, the close on Tuesday. An upside of 7.65 per cent.