Aviva agrees to purchase remaining 26% stake in India joint venture
Aviva has signed an agreement to purchase the remaining 26% share of Aviva Life Insurance Company India Limited (“Aviva India”) from Dabur Invest Corp (“DIC”), its local joint venture partner. This will take Aviva’s ownership of Aviva India to 100% and will give Aviva full control over the strategic direction of the business.
Aviva India is currently a life insurance joint venture between DIC and Aviva which was formed in 2001. The acquisition follows recent regulatory foreign direct investment (“FDI”) changes in India, which now allow foreign insurers to increase their shareholdings in local insurance companies to 100%. There were similar increases in Aviva’s shareholding in 2016 and 2022 following changes to the FDI regulations.
Financial impacts of the transaction are not material to Aviva.
On completion of the transaction, the current joint venture agreement will be terminated. Completion will happen in due course.
Additional proceeds of c.£80m expected from Aviva’s exit of Singlife joint venture
Aviva plc (“Aviva”) announced that it expects to receive approximately £80m1 (SGD 0.1 billion) of additional proceeds relating to the sale of Aviva’s stake in Singapore Life Holdings Pte Ltd (“Singlife”), together with two debt instruments, to Sumitomo Life Insurance Company (“Sumitomo Life”). The additional proceeds are the result of a separate transaction whereby Sumitomo Life has agreed to purchase TPG’s2 equity stake in Singlife. Receipt of the additional proceeds is conditional upon the completion of the separate transaction between Sumitomo Life and TPG.
The revised total proceeds that Aviva expects to receive are approximately £930m1 (SGD 1.6 billion). The disposal proceeds will be considered alongside Aviva’s existing capital management framework. Under this framework, any surplus capital is available for reinvestment in the business, bolt-on M&A, and/or additional returns to shareholders.
The disposal of Aviva’s stake in Singlife, including the sale of two debt instruments, was announced on 13 September 2023 and remains subject to customary closing conditions, including regulatory approvals, and is expected to complete in Q1 2024.
Ageas completes the acquisition of majority stake in the Indian Life insurance joint venture Ageas Federal Life
Ageas announced that it has completed the acquisition of the remaining 25% stake of IDBI Bank in the Indian Life insurance joint venture Ageas Federal Life Insurance Company Ltd. (AFLIC).
With this transaction, Ageas increases its interest in the joint venture, that it has operated to date together with IDBI Bank and Federal Bank, to 74%. Federal Bank maintains its 26% stake in AFLIC. IDBI exits as a shareholder but remains a distribution partner.
Ageas acquires the additional 25% stake for a total cash consideration of INR 5.8 billion (EUR 73 million) *. As from Q4 2022, AFLIC will enter into the consolidation scope for both IFRS and Solvency II. Under IFRS, this transaction is considered a step acquisition, hence the previously held interest of 49% is treated as if it had been disposed of and generates a non-cash capital gain of EUR 50 million. The impact of the transaction on the Group’s solvency position is neutral.
Ageas, IDBI Bank and Federal Bank established the Life insurance joint venture IDBI Federal Life Insurance Company Ltd at the end of 2006, and since that time its gross inflows have grown consistently to reach EUR 247 million** in 2021. Within six years the company was profitable and has continued to be, generating a net profit of EUR 9 million** in 2021.
* Based on: 1 EUR = 79.43 INR as per 19/09/2022** FX FY 2021
Ageas is a listed international insurance Group with a heritage spanning almost 200 years, offering Retail and Business customers Life and Non-Life insurance. As one of Europe’s larger insurance companies, Ageas concentrates its activities in Europe and Asia through a combination of wholly owned subsidiaries and long-term partnerships with strong financial institutions and key distributors. Ageas ranks among the market leaders in the countries in which it operates. It represents a staff force of about 40,000 people and reported annual inflows close to EUR 40 billion in 2021 (all figures at 100%).
Alpha Bank announces its intention to pursue a joint venture with an international strategic partner in the Greek real estate market
In the context of its updated business plan, Project Tomorrow, as part of its business development initiatives through joint ventures with international partners, Alpha Bank S.A. (“Alpha Bank”) announces that it is initiating a process for the selection of a strategic partner to pursue a joint venture through its listed subsidiary Alpha Astika Akinita S.A. (“Alpha Astika Akinita” or the “Company”) in the Greek real estate market (“Project Skyline” or the “Transaction”).
Alpha Bank aims for the new joint venture to be ideally positioned to capitalize on the market’s favourable fundamentals, benefitting from the capabilities and resources of its key shareholders. The joint venture partner to be selected is currently intended to acquire, subject to all applicable securities and capital markets law rules, a controlling stake in the Company and contribute to the development of its business plan, while Alpha Bank intends to retain a minority stake in the joint venture.
Through Project Skyline, Alpha Bank envisages the transformation of Alpha Astika Akinita into a multiasset real estate investment platform in the Greek market, while the Company’s real estate servicing unit is expected to be acquired by and consolidated under Alpha Bank’s fully-owned subsidiary, Alpha Real Estate Management and Investments S.A. (“AREMI”). Within the above context, it is intended that Alpha Astika Akinita enters into a long-term agreement with AREMI for the management of the Company’s real estate portfolio.
The intended timeline for the Transaction currently envisages the launch of the process in early September 2021, the selection of the preferred partner for the Transaction to take place by the end of the current year, with the consummation of the overall Transaction expected within the first half of 2022.
The final structure, the terms of cooperation with the selected strategic partner, the timeline, the overall execution and consummation of the Transaction are subject to conditions and various risks that may be beyond the Bank’s control, including the prevailing market conditions and the macroeconomic environment in jurisdictions outside of Greece. The consummation of the Transaction will in any case remain subject to pertinent corporate and regulatory approvals.
AXIA Ventures Group Ltd and the Investment Banking Division of Alpha Bank are acting as financial advisors to Alpha Bank in relation to Project Skyline.
Alpha Bank will be promptly informing investors of any material developments relating to Project Skyline.
Joint Venture Between Premuda And Columbia Shipmanagement
The Italian ship-owning Group Premuda, controlled by Pillarstone, the industrial and financial platform that supports the relaunch of companies in temporary difficulty, has laid the basis for the constitution of a joint venture with Columbia Shipmanagement (CSM). CSM is an international blue chip organization with over 40 years of experience as world-class ship management and maritime services provider within the shipping industry.
Thanks to the JV announced today, CSM, one of the world leaders in the sector, will enter the Italian market and will take care of the full management of the entire Premuda fleet, currently consisting of 28 ships under the control of the Genoese company and Finav, the Fund for credit management in the shipping sector established by Davy Global Fund Management, with the support of Pillarstone Italy. Premuda will be a shareholder of the new company, which will be called CSM Italy and will be based in Genoa.
Within the framework outlined, once concluded the due trade-unions consultation’s procedures, CSM Italy will provide ship management and it’s maritime services..
Other than Premuda fleet management, CSM Italy will offer, from the beginning, the CSM Group full range of management and maritime services to the entire Italian maritime cluster. The share capital of CSM Italy will be potentially open to other participants – Italian owners and operators – willing to join the spirit of such an initiative.
The implementation of this new partnership with CSM will allow Premuda to obtain an even more efficient and flexible fleet management, which is more and more necessary in the current competitive market, and to continue its business model transformation and its activity expansion, undertaken at the beginning of 2019 with the full support of the shareholder.
For the President and CEO of CSM, Mark O’Neil, the new project of the joint venture confirms his company’s ambitions in the important Italian market: “CSM has always had the greatest respect for the Italian shipping sector. We believe we are the right partner for a company in strong growth, to which we can ensure economies of scale, digital solutions and operational optimization. CSM Italy will stand ready and willing to serve other Italian operators, in all of the maritime sectors, providing them with a tailored service to meet their particular needs and involving them in the development of the Company from the outset. This is an extremely exciting time for Italian shipping and we wish our new Managing Director Xanthos Kyriacou the very best for the future. He is absolutely the right person for the job”For the CEO of Premuda, Marco Fiori: “Two “first in class” organizations, that share the same business approach, have identified a common goal. The opportunity to partner with CSM comes from a very thorough analysis of our operating model and it is a fundamental part of the Premuda development, aimed at optimizing the commercial and strategic management of the fleet, with the support of a technical partner of the highest level. This new operation is a “win win” for the two participants and for Genoa that will host the activity of a new international group.”
Gaudenzio Bonaldo Gregori, CEO of Pillarstone Italy: “Today’s operation represents a further step in Premuda’s development and reaffirms the strong commitment we have towards the Italian shipping sector, where we have become a very important player.”Founded more than a century ago, since 2016 Premuda has been controlled by Pillarstone Italy, the turnaround platform sponsored by the private equity fund KKR. In the last two years, the company has completed a significant renewal of the management team and relaunched the “Premuda brand” in the international market. With this goal, the Company has started an articulated rationalization, increase and diversification of the fleet and a progressive transformation of the business model. By maintaining its headquarters in Genoa, Premuda is today an international company increasingly focused on the global market.
Columbia Shipmanagement is one of the largest privately-owned international shipmanagers with offices in Cyprus, Singapore, Germany, China (Shanghai), and recently opened offices in Saudi Arabia (Riyadh) and Greece (Athens). Set up over 41 years ago by its Chairman Heinrich Schoeller, it provides tailored, performance optimised services to its international clients in all of the maritime sectors, as well as catering management, procurement, logistics, waste disposal, green recycling, superyacht management, cruise management, offshore and energy, its Performance Optimisation Control Room.
HSBC Insurance to acquire remaining 50 per cent stake in its life insurance joint venture in China
HSBC Insurance (Asia) Limited, an indirect wholly-owned subsidiary of HSBC Holdings plc (“HSBC”), is pleased to announce that it has entered into an agreement to acquire the remaining 50% equity interest in HSBC Life Insurance Company Limited (“HSBC Life China”), its life insurance joint venture in China, from The National Trust Limited (“NT”).
The transaction is in line with the removal of foreign ownership restrictions on foreign-funded life insurance companies in China, which became effective on 1 January 2020.
The transaction will be structured as a transfer of equity interest and is subject to regulatory approvals, including from the China Banking and Insurance Regulatory Commission.
Noel Quinn, HSBC’s Group Chief Executive, said: “Despite the current difficult environment engendered by the Covid-19 pandemic, we continue to take steps to implement our growth strategy. This transaction supports our ambition to accelerate growth within our Asian franchise, particularly in the dynamic and fast-growing Greater Bay Area, where we fully intend to expand in all lines of businesses. It also allows us to further extend our capabilities in wealth, another area of strategic focus for the Group.”
Peter Wong, HSBC’s Asia Pacific Chief Executive, commented: “As the leading international bank in China, HSBC is privileged to participate in the opening up of the insurance sector, a positive development which underlines China’s commitment to financial reform. This transaction allows us to increase our investment and deepen our presence in China, an important country within our well-regarded Asian franchise and a strategic market supporting our customers’ activity across our global footprint.”
Bryce Johns, Global Chief Executive of HSBC Life, added: “The increase of our stake in the joint venture demonstrates our strong commitment to continued investment in mainland China, on track to be the largest insurance market in the world. Full ownership of HSBC Life China, combined with the HSBC Group’s international strengths and robust digital and wealth management capabilities, will enable us to significantly extend our reach and amplify the scope of our life insurance offerings to meet the burgeoning protection, health and wealth needs of our customers in the Mainland.”
HSBC Life China was formed in 2009 as a 50:50 joint venture between HSBC and NT, and as of December 2019 had a registered capital of RMB1.025 billion. Headquartered in Shanghai, HSBC Life China is present in nine key Mainland cities covering Shanghai, Beijing, Tianjin, Hangzhou, Guangzhou, Foshan, Dongguan, Zhuhai and Shenzhen. HSBC Life China offers a comprehensive range of insurance solutions covering annuity, whole life, critical illness and unit-linked insurance products.
TOP Ships Inc. Announces Purchase of 50% Interests in Two 2020-Built Scrubber-Fitted Eco MR Product Tankers and Joint Venture With Gunvor Group
TOP Ships Inc., an international owner and operator of modern, fuel efficient “ECO” tanker vessels, announced that it has acquired from a company affiliated with the Company’s Chief Executive Officer (the “Seller”) a 50% interest in two vessel owning companies (the “SPCs”) that own two ultra-high specification scrubber-fitted 50,000 dwt eco MR product tankers, M/T Eco Yosemite Park and M/T Eco Joshua Park for $27 million. Both vessels were delivered in March 2020 from Hyundai Mipo shipyard of South Korea.
The acquisitions were approved by a special committee composed of independent members of the Company’s board of directors, (the “Transaction Committee”). The Transaction Committee obtained a fairness opinion relating to the consideration paid in this transaction from an independent financial advisor.The Company also announced that the Seller had already entered into two joint venture agreements, for the two vessels, each with an equal ownership interest of 50%, with Just-C Limited, a wholly owned subsidiary of Gunvor Group Ltd (the other 50% owner), one of the world’s largest independent commodities trading houses by turnover.
Each of the two product tankers have time charters with Clearlake Shipping Pte Ltd, a subsidiary of Gunvor Group Ltd and one of the largest charterers of tanker vessels in the world, for a firm term of five years plus two additional optional years. The total potential gross revenue backlog from these contracts is about $91.7 million.
Finally the vessels have a five year non-amortizing senior financing agreement in place from a major Greek bank for approximately 45% of their charter-free value.
ERGO and Great Wall Motors sign Joint Venture for Auto Mobility insurance business in China
Great Wall Motors (GWM) and ERGO Group signed an auto mobility Joint Venture agreement with the objective to establish a leading provider of technology and data-driven insurance product and service solutions in the automotive and new mobility ecosystem. The joint venture will focus on the development and distribution of automotive insurance products and services as well as new mobility solutions via car dealerships and GWM affiliates in the Chinese market.
The grand plan of GWM and ERGO Group will be fully fledged by developing an advanced IT solution for Auto Mobility ecosystem, orchestrating innovative insurance solutions, and building a highly efficient and professional team, in order to achieve ultimate integration of superior resources from both sides.
Jianjun Wei, Founder and Chairman of Great Wall Motor Company Limited, expressed his confidence towards the cooperation: “GWM and ERGO each carries their own expertise and advantages in respective industries, GWM being the leading automotive manufacturer in China and ERGO being the leading insurance group in the global market. In-depth cooperation of insurance business between the two companies will open new doors to elevated services and integrated solutions to the market. And an integration of superior resources from both sides through technology and data science expertise will infuse the Joint Venture with full innovative energy.”
Dr. Markus Rieß, Chairman of the Board of Management of ERGO Group AG, emphasized at the Memorandum of Understanding signing ceremony: “With the Joint Venture agreed today, we are consistently continuing ERGO’s growth path. Together with our partner Great Wall Motors, we have set the common goal to establish a leading provider within the auto mobility ecosystem in terms of technology and data-driven product and service solutions. It underlines ERGO’s strategic ambition for being a leading partner of the Automotive industry and it demonstrates our strong position in one of our core growth markets. We look forward to working together on delivering pioneering solutions and benefit our partners and clients.”
With a clear global strategy, GWM is one of China’s most innovative up-and-coming automakers, and is currently the largest manufacturer of SUVs and pickups in the Chinese market. In 2003 and 2011, GWM successfully listed in Hong Kong Stock Exchange H share and domestic A-share market respectively. Bringing forward 4 brands, HAVAL, WEY, ORA and Pickup, GWM achieved one million plus new car sales for three consecutive years from 2016 to 2018. As a fast growing business aspect among GWM’s overall business aspiration in auto mobility industry, insurance will for sure become a powerful force driving forward GWM’s growth strategy, especially when joined with such a professional and well-established partner from Germany.
ERGO Group is one of the major insurance groups and represented in 30 markets in Europe and Asia offering a comprehensive spectrum of insurance, investments and services. ERGO is part of Munich Re Group, one of the leading reinsurers and risk carriers worldwide. The cooperation underpins ERGO’s role as strategic partner to the auto mobility industry via ERGO Mobility Solutions (EMS) and is continuing its growth course and strengthening its presence in the strategically important growth market of China.
Launched in 2017, EMS was set up to focus on developing strategic cooperation with the automotive and mobility industry. EMS’ market entry into the world’s most important automobile market is in line with its strategy of building up a strong position in the three automotive anchor markets of China, Germany and the USA.
Karsten Crede, Member of the Board of Management of ERGO Digital Ventures AG and responsible for EMS: “Automotive financial services and particularly insurance is becoming increasingly important to car manufactures to enhance customer loyalty and dealer satisfaction. The Joint Venture agreed today underscores ERGO’s role as a strategic partner to the automotive industry, providing innovative mobility solutions for private and corporate customers as well as car dealerships”.
Crédit Agricole Consumer Finance and Bankia announce the banking license and trademark of their joint-venture
The joint-venture between Crédit Agricole Consumer Finance and Bankia has been approved by the Spanish Ministry of Economy (Secretaría General del Tesoro) to operate as a financial credit institution. It will start its activities in the coming months, once all the formalities for registration in the official register have been completed. The joint-venture will operate under the SoYou brand.
On May 28, 2018, CA Consumer Finance, a leading consumer finance group in Europe, and Bankia, the fourth largest Spanish bank, signed an agreement to set up a joint-venture in the consumer finance business in Spain.
CA Consumer Finance holds 51% of the capital of this new entity, and Bankia holds 49%.
SoYou, the result of this strategic alliance, aims at becoming a benchmark for consumer credit in Spain. To do this, it relies on the experience that CA Consumer Finance has developed through its presence in 19 countries. This partnership also gives Bankia a subsidiary dedicated to consumer finance, a growing market in Spain.
“This license and the upcoming launch of our business with SoYou in Spain are a major milestone in the achievement of CA Consumer Finance’s strategic plan. This new entity will enable us to support our partners in Spain with a complete range of services and the most modern digital solutions,” said Philippe Dumont, Chief Executive Officer of CA Consumer Finance.
“We are very satisfied with the launch of SoYou, which will enable Bankia to continue to strengthen its position in consumer finance, thanks to a key partner,” said José Ignacio Goirigolzarri, Chairman of Bankia.
Simplifying consumer finance
At its launch, SoYou will focus on point-of-sale financing, both for new and used vehicles and for services and consumer goods, and will then start its personal loan business to the end customer.
SoYou will be based on one of the most complete, flexible and agile technical platforms in the sector. It will offer 100% digital solutions for the B2B and B2C markets.
The choice of the SoYou brand reflects the company’s desire to put its partners and customers at the heart of its strategy, by constantly listening to their needs, the close and transparent relationship it will build with them and the modernity of its solutions.
“With SoYou, our objective is to make consumer finance clear and simple for our customers, by making it easier to understand, underwrite and manage,” concluded Pierre Adam, Managing Director of SoYou.
Crédit Agricole Consumer Finance and Fiat Chrysler Automobiles extend their FCA Bank joint venture until December 2024
Crédit Agricole Consumer Finance, a leading consumer finance group in Europe, and Fiat Chrysler Automobiles Italy (“FCA”), a global automaker, agreed on 19 July 2019 to extend their 50:50 joint venture company FCA Bank until 31 December 2024.
The renewal of the partnership between Crédit Agricole Consumer Finance and FCA lays the grounds to further enhance FCA Bank’s profitability by continuing in its offer of best-in class financial services.
The terms of the renewed agreement will allow for an expansion of FCA Bank’s rental and innovative mobility offer with the aim to further enlarge FCA Bank’s product range. In other respects the terms of the renewed agreement are substantially the same as those of the agreement in force, under which, FCA Bank more than doubled its volumes and more than tripled its net results from the start of this partnership, while efficiently managing its costs and risks. In order to preserve FCA Bank’s value and long term viability the agreement will be automatically renewed unless notice of non-renewal is provided no later than three years before end of the term. Consistent with the current agreement, a notice of non-renewal would trigger certain put and call rights potentially leading to the acquisition of FCA Bank by FCA to preserve its support to FCA business; if such rights are not exercised, the agreement will last until 31 December 2024.
With 18 markets and 18 brands managed, FCA Bank is a leading player in Europe for financial solutions dedicated to the automobile sector. FCA Bank obtained a full banking license in 2015. FCA Bank offers a complete range of financial products and services to FCA Group brands and various other prestigious Automotive Groups that include Jaguar Land Rover, Ferrari, Aston Martin and Morgan; its portfolio of partners also includes the Erwin Hymer Group, Europe’s largest manufacturer of motorhomes and caravans as well as well-known motorcycle manufacturers, such as Harley Davidson and MV Agusta.