Deals

Natixis to Sell Most of Coface Stake in $521 Million Deal

  • Sale will allow the bank to return more capital to investors
  • CEO Riahi says remaining stake could be sold over time

Photographer: Loic Venance/AFP via Getty Images

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Natixis SA agreed to sell most of its remaining stake in credit insurer Coface SA to Arch Capital Group in a 480 million-euro ($521 million) deal that may allow the French lender to return more execess cash to shareholders.

Arch Capital, a U.S. specialty and mortgage insurer, will acquire 29.5% of Coface at 10.70 euros a share, Natixis saidBloomberg Terminal Tuesday. That’s a discount of 6% to Monday’s closing price. The French bank will keep its remaining 12.2% stake as a financial investment.