Generali buys 8.71% of Banco CTT

Italian insurance group Generali has bought a stake of approximately 8.71% in Banco CTT through a €25 million capital increase, CTT Group announced this Monday.

“The transaction includes the subscription by Tranquilidade/Generali Seguros of a €25 million reserved share capital increase in Banco CTT in exchange for a stake of approximately 8.71% (the “Capital Increase”),” reads a statement sent to the Portuguese Securities Market Commission (CMVM).

In a separate statement, the Generali group said that with this operation it was taking on “the ambition of consolidating its position in the Portuguese insurance market.”

The group said that the transaction also 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.”