Cleary Gottlieb is representing JC Flowers & Co in its EUR243.6 million acquisition of Fidea (Belgium) from the KBC group. The transaction was signed on 17 October, 2011 and is expected to be completed in the first quarter of 2012, subject to customary regulatory approvals.
The divestment of Fidea is part of KBC’s wider restructuring plan, approved by the European Commission, following government support received by KBC in 2008.
Fidea is a complementary insurance distribution channel (under a separate brand name) that KBC used in addition to its core bancassurance platform built around tied insurance agents and bank branches. It employs 316 people and has a market share of about 1.5%. It offers a complete range of non-life, life and investment-type insurance products to private customers, SMEs and corporate clients.
JC Flowers & Co is a global investment adviser and private fund manager focused solely on the financial services industry.
KBC is a bank and insurance group with home markets in Belgium and Central and Eastern Europe. In Belgium, it provides banking and insurance services under the KBC and CBC brand names.
The Cleary Gottlieb team is led by Brussels partner Laurent Legein and includes associates Tom Vandebosch, David De Peuter and Matthias De Witte. Associates Christophe Wauters and Morgane Dor are advising on regulatory matters. Senior Attorney Loïc Peltzer is advising on employment matters. Senior Attorney Frederieke Compernolle and associate Steven Peeters are advising on tax matters.
Cleary Gottlieb (with lead partner Laurent Legein) is also representing long-standing client Dexia in the nationalization, announced on October 9, 2011, of Belgian banking subsidiary Dexia Bank Belgium (DBB). Dexia’s 100% interest in DBB will be sold for an initial cash consideration of EUR4bn.
Cleary Gottlieb is also advising Dexia on the new sovereign guarantees granted by the French, Belgian and Luxembourg States, as well as on possible further divestments.
