Portugal's Banco BPI SA (BPI.LB) said late Thursday that it will sell its life insurance and pension-management business, and two investment funds to CaixaBank SA (CABK.MC) for a total of 222 million euros ($262.8 milllion).
CaixaBank--which owns an 84.5% stake in Banco BPI--will pay EUR135 million for the life insurance and pensions business through its VidaCaixa subsidiary. It will also buy BPI Asset Management and the BPI Global Investment Fund for EUR75 million and EUR8 million, respectively.
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The Spanish bank will also buy BPI's research and brokerage business for EUR4 million, and set up an office in Portugal to develop it.
BPI expects pretax capital gains of EUR73 million from the transactions, while its fully-loaded common equity Tier 1 ratio should strengthen to 12.8% from 11.5%.
CaixaBank said the transactions won't affect its balance sheet, financial results or capital ratios.
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(END) Dow Jones Newswires
November 24, 2017 01:34 ET (06:34 GMT)