MILAN, April 13 (Reuters) - Italy’s Octo Telematics said on Friday its chief executive and chairman had agreed to buy a 20 percent share from controlling shareholder Renova, in a move aimed at resolving issues deriving from the imposition of sanctions on the Russian group.
Earlier this week sources said that the group, which provides black boxes and data analytics services for the auto insurance industry, had put a planned initial public offering on hold after Renova was hit with sanctions.
“The group is in direct contact with the competent U.S authorities and is confident that, with this deal, it will solve all problems linked to Octo Telematics independence from Renova,” the statement said.
It added that with the deal Renova would cut its stake in the group to 48.55 percent from 68.5 percent.
Private equity group Pamplona Capital Management is also a shareholder in Octo Telematics with a 26.5 percent stake. (Reporting by Giulia Segreti; editing by Francesca Landini)