Criteria Caixacorp will sell 50% of its non-life insurance unit, Vidacaixa-Adeslas, to Madrid-based insurer, La Mutua Madrilena, Bloomberg reports. Criteria will raise about €1.08 billion from the transaction, which is expected to be completed by the third quarter of 2011.
Juan Hormaechea will be appointed as the president of Vidacaixa-Adeslas, while Javier Murillo will become Chairman. Criteria will receive €65 million in dividend payments from the unit before the deal. Criteria is expecting to reduce debt and increase its cash reserves with the deal.
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