LONDON - Société Générale of France said on Tuesday that it planned to buy the outstanding shares in its online banking business, Boursorama.
The bank said it would file a takeover agreement with French financial regulators on Tuesday, in which it will offer 12 euros a share, or about $16.70, for each outstanding share not held by Société Générale or the Spanish savings bank La Caixa.
Société Générale owns 56 percent of Boursorama’s outstanding shares and La Caixa would retain its 21 percent stake after the share purchase. Société Générale said it had reached a shareholder agreement with La Caixa.
“The strengthening of Société Générale in the capital of Boursorama, the leading online bank in France, is part of the group’s strategy to pursue its development in this market,†Société Générale said.
Based on 87.9 million shares outstanding, the deal would value Boursorama at about €1 billion.
The announcement comes as other banks are looking to bulk up their online offerings.
Last year, BNP Paribas started Hello Bank, an online bank in Europe aimed at customers who prefer to conduct their financial services activities on smartphones and tablets.
Boursorama is expected to appoint an independent expert to evaluate the offer.
The offer for shareholders to sell their shares is expected to open in May, Société Générale said.
