Brief: CTT And Banco CTT Enter Into Strategic Partnership With Generali Seguros

CTT - Correios de Portugal SA

07/11/2022 06:13

Nov 7 (Reuters) - CTT Correios de Portugal  CTT.LS :
    * CTT CORREIOS DE PORTUGAL AND ITS SUBSIDIARY BANCO CTT, HAVE ENTERED INTO A
STRATEGIC PARTNERSHIP AGREEMENT WITH GENERALI SEGUROS
    * TRANSACTION INCLUDES LONG-TERM DISTRIBUTION AGREEMENTS, WITH 5-YEAR
RENEWABLE
EXCLUSIVITY PERIODS, FOR THE DISTRIBUTION BY CTT AND BANCO CTT OF LIFE AND
NON-LIFE INSURANCE PRODUCTS OF TRANQUILIDADE/GENERALI SEGUROS
    * TRANSACTION ALSO INCLUDES SUBSCRIPTION BY TRANQUILIDADE/GENERALI SEGUROS
OF A 25
MILLION EUROS RESERVED SHARE CAPITAL INCREASE IN BANCO CTT IN EXCHANGE FOR A
STAKE OF APPROXIMATELY 8.71%
    * A SHAREHOLDERS’ AGREEMENT WILL PROVIDE TRANQUILIDADE/GENERALI SEGUROS WITH
MINORITY PROTECTION RIGHTS CONSISTENT WITH THE SIZE OF THE STAKE
    * INSURANCE DISTRIBUTION AGREEMENTS CONTEMPLATE A FIXED PRICE BY
TRANQUILIDADE/GENERALI SEGUROS OF 1 MILLION EUROS AND 9 MILLION EUROS TO CTT AND
BANCO CTT, RESPECTIVELY
    * PRICE TO BE SETTLED IN THE INITIAL SIX YEARS AND ADDITIONAL CONTINGENT
PAYMENTS
DEPENDING ON THE PERFORMANCE ACHIEVED OVER THE TERM OF THE AGREEMENTS
    * ADDITIONAL CONTINGENT PAYMENTS DEPENDING ON THE PERFORMANCE ACHIEVED OVER
THE
TERM OF THE AGREEMENTS
    * CAPITAL INCREASE WILL REINFORCE BANCO CTT’S CAPITAL POSITION, WITH A
POSITIVE
IMPACT OF APPROXIMATELY 240 BASIS POINTS ON THE PRO-FORMA FULLY LOADED CET1
CAPITAL RATIO REPORTED AS OF 30 JUNE 2022, AND SUPPORT THE DEVELOPMENT OF BANCO
CTT
    * CAPITAL INCREASE IMPLIES A 1.1X PRICE-TO-BOOK VALUE MULTIPLE VALUATION
BASED ON
BANCO CTT’S SHAREHOLDERS’ EQUITY AS OF 30 JUNE 2022
    * CTT EXPECTS THAT THE TRANSACTION, IS CLOSED BEFORE THE END OF 2023

        
 Source text for Eikon: https://bit.ly/3TdjPCH  urn:newsml:reuters.com:*:nL8N320117  urn:newsml:reuters.com:*:nFWN2U80C4
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