Investment company Exor stated Tuesday it has signed a memorandum of understanding (MoU) to sell all of its shares in Bermuda stationed reinsurer PartnerRe to France’s Covea for $9 billion in cash.
The declaration came almost one month after Exor, the investment automobile of Italy’s Agnelli family, and the unlisted French insurer stated they had started discussions over a possible sale of PartnerRe.
Exor, whose portfolio consists of controlling holdings in car manufacturers Fiat Chrysler and Ferrari and in industrial machinery agency CNH Industria, bought PartnerRe in 2016 for a total value of $6.72 billion in cash, after a long takeover war.
The MoU features a cash dividend of $50 million to be paid to Exor prior to the sealing of the agreement, anticipated by 2020-end, Exor mentioned in a statement.
Exor Chairperson John Elkann stated in the statement that PartnerRe was a stronger firm today.
The combination cash return for Exor following the closure of the agreement would amount to $3 billion, along with dividends given by PartnerRe since 2016, the statement read.
Covea will sign a definitive agreement to buy PartnerRe after it completes a required consultation with workers councils, the assertion added.
The French organization mentioned in a separate statement that it had signed the MoU with Exor, adding that the proposed purchase of PartnerRe would let it “consolidate its diversification and internationalization, by creating a top tier European insurance and reinsurance company”.