Aegon sells Hungarian arm to VIG, acts to cut debt (updated)

Vienna Insurance Wiener Versicherung Gruppe AG

23/03/2022 11:30

(Adds detail)
    March 23 (Reuters) - Aegon  AEGN.AS  has completed the sale
of its Hungarian arm to Vienna Insurance Group (VIG)  VIGR.VI 
for 620 million euros ($682 million), the Dutch insurer said on
Wednesday.
    Aegon had announced the 830 million euro sale of its Central
and Eastern European insurance, pension, and asset management
businesses to VIG in 2020, but the Hungarian government
initially blocked the deal.
    Late last year, however, the country's finance ministry said
it had signed a memorandum of understanding with VIG that could
enable it to take a 45% stake in the two companies' local unit,
and the European Commission later ordered Hungary to withdraw
its veto.  urn:newsml:reuters.com:*:nL8N2M02H7
    Right-wing nationalist Prime Minister Viktor Orban has
repeatedly said Hungarian companies or the state must hold
majority stakes in sectors including finance, energy, media and
trade.
    Aegon, which plans complete the sales of its Polish,
Romanian and Turkish businesses this year, said in a statement
the sale was an important step towards narrowing its strategic
focus and bolstering its balance sheet.
    The group said the cash boost would help it to lower its
debt, and announced a 375 million euro repayment tender offer as
well as a 300 million euro share buyback from April to December.
    Following the debt tender offer, Aegon expects to have
reduced its gross financial leverage to 5-5.5 billion euros.
    ($1 = 0.9089 euros)

 (Reporting by Sarah Morland; editing by Jason Neely and Barbara
Lewis)
 ((sarah.morland@thomsonreuters.com; +48 58 769 65 92;))