This content is not available in your region

Exor in new talks with Covea over scrapped $9bn sale of PartnerRE - report

By Reuters

<div> <p><span class="caps">MILAN</span> – Exor, the holding company of Italy’s Agnelli family, has restarted talks with French insurer Covea over a possible sale of reinsurer PrtnerRE, Il Sole 24 Ore reported on Saturday, after the deal was scrapped last year due to the pandemic.</p> <p>Talks have resumed in the recent weeks, the daily newspaper said, citing several unidentified sources. </p> <p>Exor and Covea were discussing a valuation for Bermuda-based PartnerRE which was “close” to the one agreed as part of their original deal, one of the sources said.</p> <p>Covea last year walked away from its planned purchase of 100% Exor-owned PartnerRe for $9 billion in cash, saying it could no longer buy it under the terms of their agreement, which was signed before the coronavirus pandemic.</p> <p>Exor declined to comment on the report, while privately held Covea was not immediately available for comment.</p> <p>Under the original terms of the agreement with Covea, Exor would have received an aggregate cash return of $3 billion from its purchase and disposal of PartnerRE, including dividends paid by the reinsurer since 2016, Exor had said.</p> <p>After the deal collapsed, Covea agreed to invest 1.5 billion euros ($1.75 billion) in entities managed by PartnerRE and in undisclosed investments related to Exor, in a bid to normalise relations between the two companies.</p> <p>It is not known how long revived talks could last and whether a transaction would be eventually agreed, Il Sole 24 Ore said.</p> <p>($1 = 0.8593 euros)</p> <p/> </div>