Natixis to Sell Most of Coface Stake in $521 Million Deal (1)

Natixis SA agreed to sell most of its remaining stake in credit insurer Coface SA to Arch Capital Group in a 480 million-euro ($521 million) deal that may allow the French lender to return more execess cash to shareholders.

Arch Capital, a U.S. specialty and mortgage insurer, will acquire 29.5% of Coface at 10.70 euros a share, Natixis said Tuesday. That’s a discount of 6% to Monday’s closing price. The French bank will keep its remaining 12.2% stake as a financial investment.

Natixis took Coface public in 2014, but the shares barely budged from their offering price of 10.40 euros ...