Minority stake relinquished - no longer shareholder in Gerling Group
Stake in credit insurer Gerling NCM increased
Deutsche Bank relinquishes its minority stake of 34.6 % in Gerling-Konzern Versicherungs-Beteiligungs-AG (GKB). The bank will transfer 28.6 % of its shareholding to a company controlled by Dr. Rolf Gerling and the remaining 6.0 % to Dr. Joachim Theye.
Dr. Clemens Börsig, member of the Board of Managing Directors of Deutsche Bank, said: "With this transaction Deutsche Bank leaves the Gerling shareholder group. For the Gerling Group, the received share package opens up new opportunities in negotiations with potential investors."
Simultaneously Deutsche Bank, Swiss Re, Sal. Oppenheim and GKB have agreed to restructure the ownership of credit insurer Gerling NCM Credit and Finance AG (Gerling NCM). The transaction is based on a valuation of Euro 655 million. Gerling Group will reduce its stake from 55.9 % to 3.0 %. It will receive a cash payment of Euro 120 million from Deutsche Bank and of Euro 60 million plus the annulment of certain rights from Swiss Re.
On completion of the transaction, which is expected to close in summer 2003, the shareholders of Gerling NCM will be: Swiss Re 47.50 %, Deutsche Bank 35.32 %, Sal. Oppenheim 7.00 %, Gerling NCM Pension Trust 7.14 % and Gerling Beteiligungs-GmbH 3.04 %.
In addition, Swiss Re and Deutsche Bank will each underwrite Euro 55 million of a Euro 110 million subordinated note to bolster Gerling NCM's capital base. It is the goal of the shareholders to work towards an Initial Public Offering within the next few years, dependent on market conditions.
The transaction is subject to regulatory approvals.