Portuguese government considers selling off insurance arm of state financial group CGD

10 December 2013

The Portuguese government is considering floating most of the insurance arm of state financial group Caixa Geral de Depósitos (CGD), Caixa Seguros, on the stock exchange, Portuguese newspaper Público reported.

The move, however, will not be made if proposals from the Apollo Global Management and Fosun International groups, selected to make offers for the State insurance group, are too low or not credible.

The two competitors for the final phase of the privatisation of Caixa Seguros, US investment fund Apollo Global Management and Chinese group Fosun International have until 16 December to make firm offers.

However, if the proposals do not meet the expectations of the State and CGD then it is possible that the insurance group will be floated on the stock exchanged, via an initial public offering (IPO), between 70 percent and 75 percent of the state insurance group, which has a 30 percent share of the Portuguese market.

The possibility of floating Caixa Seguros on the stock exchange has become more likely following the success of the IPO of postal company CTT-Correios de Portugal held last week and which netted the State almost 600 million euros.

Caixa Seguros owns the Fidelidade, Multicare, Seguros de Saúde and Cares, Companhia de Seguros insurance companies. (macauhub)