Commerzbank AG unit mBank SA signed a conditional agreement to sell an organized part of its unit mFinance to Denmark-based Phoebe IVS, the lender said Nov. 27.
The transaction, expected to be completed in the first quarter of 2018, will be carried out in two stages. The bank will first sell and transfer unit Latona SA to Phoebe IVS, after which mFinance will sell and transfer an organized part of its business to Latona. The expected maximum value of the transaction amounts to around 520 million Polish zlotys, of which approximately 465 million zlotys will be booked by the bank over 15 years.
The organized part of mFinance that is subject to the sale forms a separate business activity consisting of providing insurance agency services regarding group insurance agreements.
The buyer will finance the deal with funding provided by Ireland-registered Purple Star Receivables Funding DAC, with support from a syndicate of institutional investors. Purple Star Receivables Funding and Indigo Agencies Holdings Ltd. will act as guarantors and are parties to the agreement.
Phoebe IVS and Indigo Agencies Holdings are affiliated with Indigo Group, which includes Indigo Underwriters, a company licensed in the U.K. and focused on specialist insurance and reinsurance underwriting and agency activities.
As of Nov. 27, US$1 was equivalent to 3.53 Polish zlotys.
