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Report: Argentina's Grupo Indalo selling insurer Providencia to pay hefty tax bill

Argentinecasino magnate Cristóbal López's business conglomerate, Grupo Indalo, is selling Providencia Compañía Argentina de Seguros SA, formerly knownas Generali Argentina, just six months after agreeing to purchase it from Italianinsurer Assicurazioni Generali SpA, La Naciónreported, citing anonymous sources.

GrupoIndalo signed an agreementto acquire Generali Argentina, reportedly for around $15 million, in November 2015,and then changed its name to Providencia in February. The group's entry into theinsurance market was designed to build on potential synergies with , which Indalo also acquiredin 2015.

However,in March 2016, Argentine tax authority AFIP hit Indalo with an unpaid tax bill of8 billion Argentine pesos and, as a result, the group is reportedly looking to selloff its remaining assets not already frozen by the courts, including its insuranceunit.

Indalohas previously accusedthe government of President Mauricio Macri of harassing the company through tax-evasioncharges as a tactic to force the group to sell off its assets, including its mediabusiness.

Accordingto the sources cited in La Nación, Lópezhas contacted potential buyers to gauge interest in the insurer, but Grupo Indalohas not confirmed the information.

As ofDecember 2015, Generali Argentina had assets of around 731.2 million pesos and posteda profit of 8 million pesos in 2015, according to data from Argentina's insuranceregulator.

As of May 2, US$1 was worth 14.31Argentine pesos.