French financial services group Fimalac SA (EPA:FIM) on Thursday said it had disposed of 10% in US credit rating services provider Fitch Group to US media and information group Hearst Corporation, after securing clearances from regulators and administrative authorities.
The agreement, announced in February, resulted in Fimalac and Hearst each holding a 50% stake in Fitch Group, the vendor said.
Fimalac pocketed USD177m (EUR135m) from the sale of the stake, it said, adding it would account for its remaining 50% in Fitch Group by the equity method in its consolidated financial statements to show an estimated net capital gain of over EUR80m.
Frank A. Bennack Jr, the chief executive of Hearst Corporation, said in February when announcing the deal, that the acquisition of the further stake in Fitch Group reflected the group’s confidence in Fitch’s potential for future growth.
Fitch comprises Fitch Ratings, providing timely and prospective credit opinions to the global credit markets, and Fitch Solutions acting as a distribution channel for the products of Fitch Ratings, as well as a provider of data, analytics, and related services.
Apart from financial services, Fimalac invests in real estate, luxury hotels, leisure and entertainment.
Hearst Corp has a portfolio including magazines, newspapers and business publishing, cable networks, television and radio broadcasting, Internet businesses and real estate.