Chilean financial institution CorpGroup is mulling over divestment of its insurance division to a pension fund manager, Inversiones La Construccion (ILC), in a deal worth approximately $165m.

The company, which manages CorpBanca, said that it has inked a MOU with ILC for the sale of a controlling stake in its general insurance unit, CorpSeguros, and its life insurance arm, CorpVida, reported bnamericas.

ILC will purchase a 67% stake in CorpGroup Vida, the parent company of CorpSeguros and CorpVida, while CorpGroup will own the remaining 33%.

Under the terms of the transaction, CorpGroup will receive cash $165m, while ILC will assume a proportional share of the units’ debt obligations.

The deal values the two insurance subsidiaries at nearly $650m, CorpGroup said in a statement.

It is believed that CorpGroup owner Alvaro Saieh had received at least three offers from the interested parties for acquisition of the insurance companies.

The due diligence proceedings has started and it is most likely that a deal could be inked by 30 November this year.