Italian insurer Generali Group is planning to acquire an additional 4% stake in the company’s management holding company, Generali Deutschland Holding.
Generali has already agreed to acquire a 3% stake in the holding from private investors for a total consideration of €171m, or €105 per share.
The additional 4% stake will help Generali to take full equity control of the company.
After the closure of transaction, which is expected by the end of the first semester 2014, Generali will retain the entire net result of Generali Deutschland Holding, equal to €504m in 2012.
Generali CEO Mario Greco said that the acquisition is consistent with the company’s aim to have full control of all its strategic business units and is part of the company’s plan to simplify the group.
"This will be a value-accretive investment which will generate a return above the profitability target outlined in our strategic plan," Greco added.
Generali Deutschland offers a range of Life, P&C and Health products and services through a multi-channel distribution approach. In 2012, its premium income totaled to €17.6bn with 13.5 million customers.