BRUSSELS--Shares in Belgian insurance group Ageas NV (AGS.BT)
rose over 5% on Monday, after it announced the sale of the assets
of its bad bank, Royal Park Investments, to an institutional
investor over the weekend.
Shares in Ageas were up 5.8% at 9.50 a.m. local time, making it
the strongest gainer in the Bel-20 index.
The deal will bring an estimated cash flow to Ageas of 1.04
billion euros ($1.35 billion), the company said, adding that it has
reached an agreement with the Belgian state on the sale of its call
option on BNP Paribas SA (BNP.FR) shares for a total consideration
of EUR144 million.
"This is another major step forward in simplifying our company
and will eliminate the uncertainties linked to the evolution of the
value of these assets," Ageas Chief Executive Bart de Smet said in
a statement. "The transaction will also significantly strengthen
our net cash position."
Write to Frances Robinson at frances.robinson@dowjones.com
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