Gjensidige aims to sell $557 million Storebrand stake

OSLO Tue Feb 25, 2014 12:18pm EST

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OSLO Feb 25 (Reuters) - Norwegian insurer Gjensidige aims to sell its 20.1 percent stake in life insurer Storebrand, it said on Tuesday, just two weeks after failing to attract satisfactory bids for a large stake in Sparebank 1 SR-Bank.

The Storebrand sale could raise 3.36 billion Norwegian crowns ($556.58 million) at the current share price.

The potential sale is to be conducted by way of an accelerated bookbuilt offering to institutional investors only, Gjensidige said in its statement.

BofA Merrill Lynch, Morgan Stanley and Pareto Securities have been hired as bookrunners.

On Feb. 11, Gjensidige said it hoped to sell its 10.4 percent stake in SR Bank for some 1.67 billion crowns, but the transaction was abandoned on the following day.

Gjensidige is the top owner of Storebrand and the second largest of SR Bank, but has previously made it clear it no longer regards the stakes as strategic holdings. It was not available on Tuesday for further comment. ($1 = 6.0369 Norwegian krones) (Reporting by Terje Solsvik; Editing by Alison Williams)

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