Italian insurer Fondiaria-Sai is prepared to go ahead with initial plans to merge with Unipol Gruppo Finanziaria, together with its parent company, Premafin Holding di Partecipazioni and its subsidiary Milano Assicurazioni.

Fondiaria-SAI said that the decision was taken assuming that the two clauses in the deal, which were opposed by some members of the Ligresti family that controls FonSAI through Premafin, will be soon cleared by Unipol.

As per the merger deal, 61% stake in the unnamed merged business will be acquired by Unipol, FonSAI will get 27.45%, Milano Assicurazioni will hold 10.7%, while Premafin will have 0.85%.

An offer received by investment funds Sator Capital and Palladio Finanziaria will also be assessed and board of the insurer has agreed to provide them access for due diligence at an undetermined date, according to FonSAI.

A proposal has also been submitted by the two funds to FonSAI’s board that would raise EUR800m in fresh equity representing more than 50% of the company’s current market capitalization for the insurer.

The proposal will also raise its regulatory solvency ratio and help other investors and creditors to recover value.