MILAN, Nov 14 (Reuters) - Italy’s Unipol said on Tuesday it expected to raise 588.9 million euros ($694.25 million) from the sale of its stake in joint venture Popolare Vita, as part of an overhaul of its insurance and banking business.
The bancassurance joint venture, with Italian lender Banco BPM, is held by Unipol’s insurance unit UnipolSai which said the stake was valued by experts at 535.5 million euros.
In a separate statement, Banco BPM said that its own reorganisation process would cost a total of 788 million euros and would include buying back both the Popolare Vita stake, and a stake in Avipop Assicurazioni currently held by Aviva.
Banco BPM added that the transactions would add 11 bps to its fully-phased CET 1 ratio, a key measure of financial strength. ($1 = 0.8482 euros) (Reporting by Giulia Segreti; Editing by Isla Binnie)