Principal Financial Group Inc. (NYSE:PFG) signed a definitive agreement to acquire AFP Cuprum S.A. (SNSE:CUPRUM) from Empresas Penta S.A., Inversiones Banpenta Limitada and other shareholders for approximately $1.5 billion on October 8, 2012. The deal value is subject to adjustments for pre-closing dividends. As per the agreement, Empresas Penta S.A. and Inversiones Banpenta Limitada will sell their 63% stake in Cuprum pursuant to a public tender offer that will also include the remaining 37% of publicly traded shares. The transaction is subject to Chilean regulatory approval, grant of an irrevocable commercial power of attorney by the Sellers, pursuant to which each of the sellers will agree to accept the offer and the fulfillment of other conditions. The deal is expected to close in first quarter 2013 and be immediately accretive to earnings per share and return on equity. The tender offer will commence on December 28, 2012 and will continue till January 28, 2013. Principal will declare the takeover bid successful if it secures at least 63.4% of AFP Cuprum's shares. The transaction has been approved by Chile's pension regulator.

Lazard Ltd. (NYSE:LAZ) acted as a financial advisor while to Principal Financial Group Inc. Gregory V. Gooding of Debevoise & Plimpton, LLP and Francisco J. Illanes of Cariola Díez Pérez-Cotapos & Cía. Ltda. acted as legal advisors to Principal Financial Group Inc. J.P. Morgan Chile Limitada acted as financial advisor while Alfredo Alcaíno of Alcaíno Rodríguez Sahli acted as legal advisor to Empresas Penta S.A. and Inversiones Banpenta Limitada. LarrainVial S.A. acted as financial advisor in the transaction. Cravath, Swaine & Moore acted as legal advisor to Lazard.