June 18, 2015 / 6:00 PM / 4 years ago

UPDATE 1-Agricole chief says planned Amundi float could be worth 7 bln euros

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PARIS, June 18 (Reuters) - The proposed flotation by French banks Credit Agricole and Societe Generale of their asset management joint venture Amundi could be worth 7 billion euros ($8 billion), Agricole’s chief executive was quoted saying on Thursday.

“The valuations of asset management companies listed on the stock exchange are 13 to 16 times their earnings,” Philippe Brassac told Les Echos newspaper. “Amundi could therefore be capitalised for at least 7 billion euros.”

Credit Agricole owns 80 percent of Amundi, one of Europe’s biggest asset managers with 954 billion euros ($1 trillion) under management, and Societe Generale owns the rest.

The flotation, scheduled for this year, could involve SocGen selling its entire stake, boosting the bank’s common equity Tier 1 (CET1) ratio by about 20 basis points by the end of the year.

SocGen would keep selling Amundi’s savings and investment products through its retail banking and insurance networks for five years, an arrangement which could be subsequently renewed, the banks said on Wednesday.

For Agricole, the offering would be the first major strategic move by Brassac since he took the helm last month. The bank plans to keep a majority stake in Amundi, which posted net income of 125 million euros in the first quarter as net new inflows reach a record 24 billion. ($1 = 0.8802 euros) (Reporting by John Irish; Editing by David Holmes)

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