Ageas, the insurer based out of Belgium, is in the midst of planning to payout extraordinary dividends to its shareholders. This decision comes after Royal Park Investments, the bankrupt bank that was created from the financial crisis, was able to sell off its portfolio after the sale of a call option.
Ageas owns shares in the bank together with the state of Belgium, is set to receive Eur1.04 billion or US$1.35 billion from the sale. In the same announcement, it would be selling its call option on the shares in BNP Paribas bank to the state of Belgium for Eur144 million.
All these amounts would then be turned to a dividend of Eur1.00 per share.
According to Bar de Smet, Ageas CEO, "This is another major step forward in simplifying our company and will eliminate the uncertainties linked to the evolution of the value of these assets. The transaction will also significantly strengthen our net cash position. In line with earlier communication, we will distribute the proceeds of the agreement on the call option to our shareholders. In addition we will further increase this amount in order to propose EUR 1.00 per share. "
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