French insurance company Groupe des Assurances Mutuelles Agricoles (Groupama) finally sold its remaining 1.86% stake in Societe Generale (SocGen). The sale boosted Groupama's balance sheet by EUR 517.8 million or USD 688.3 million. It also enabled the insurance company to lessen its market risk exposure. Through accelerated book building, Groupama disposed of its 14.88 million shares at a price of EUR 34.8 per share. The selling price per share represented a 2.3% discount from its closing price of EUR 35.60 on the Paris bourse. A trader told Reuters that the bookrunners for the sale were HSBC and Goldman Sachs.
This was the latest disposal from the France-based insurer after ratings agencies put it under fire. It can be recalled that its Greek debt holdings took a hit in 2011 and 2012. Just three years ago, Groupama was a key shareholder in SocGen. It had 6.32% of voting rights and held 4.25% of the bank's capital. Groupama had also sold its Spanish and British subsidiary companies earlier.
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