Ageas, the majority owner of Belgium’s biggest life insurer, rose as much as 6 percent in Brussels trading after announcing that BNP Paribas SA’s tender offer for undated convertible notes closed successfully.
The shares climbed as much as 9.1 cents to 1.616 euros and traded at 1.59 euros, or 4.3 percent higher, at 9:41 a.m. local time. The stock is up 28 percent this year.
BNP Paribas got acceptances for more than 50 percent at an offer price of 47.5 percent of face value in its tender offer for undated convertible notes, or so-called CASHES, sold by Fortis Bank that can be converted into Ageas shares, Ageas said today in a statement.
The offer by BNP Paribas is part of a settlement of some remaining liabilities from Ageas’s Fortis legacy and will reduce the credit risk on Fortis Bank SA/NV and will make Ageas’s earnings less volatile, according to Ageas.
Ageas will announce more details, including the impact on earnings, after BNP Paribas discloses how many tendered CASHES it will convert into Ageas shares.