Generali has signed an agreement with Btg Pactual terminating the arbitration for the sale of Bsi.
According to the agreement, the Lion will pay Btg Pactual 245 million Swiss francs (almost 229 million euro) as compensation and price adjustment.
The net impact on the results of the Generali Group in the first half of 2020 - continues the note - is equal to 195 million francs, approximately 183 million euros, taking into account pre-existing provisions to cover legal costs.
At the same time, the dispute is closed and the parties waive their mutual claims and requests for compensation, without any acknowledgment of liability or default.
The arbitration had begun in 2016 and referred to a deal that took place in September 2015, when Generali Participations Netherlands – the Dutch subsidiary of the Italian group – sold BSI to Banco Btg Pactual. The dispute that ensued concerned a series of reciprocal claims, including requests for compensation under the transfer agreement.
Friday, early afternoon, the stock market share of Generali gains just over 1%, to €13,585 per share. In the same minutes, the Ftse Mib rebounded by 1,72%, after the heavy drop recorded in Thursday's session, which closed with a loss of 4,8%, the worst drop among the main European stock exchanges.
On average over the last month, Generali shares recovered 5,83%, but the performance is still negative on average over the last 6 and 12 months (-25,4 and -15,7 respectively).
