Croatian government chooses Adris's bid for CO insurer

The government on Wednesday selected the binding offer of the Rovinj-based Adris Grupa for the acquisition of a portion in the Croatia Osiguranje insurer, as it offered 905 million kuna for 39.05% of the ordinary stock in the insurance company, which means EUR 970.45 per share.
 

The Rovinj-based group, specialised in the tobacco and tourism sectors, also offered EUR 110 million as an injection of fresh capital into CO.

The other binding bid was made by a leading Polish insurer, PowszechnyZakladUbezpieczen S.A. (PZU), that offered HRK 832 million for 44.27% of ordinary shares, which means EUR 800 per share, plus an injection of fresh capital in the amount of EUR 51 million.

Both Prime Minister Zoran Milanovic and Finance Minister Slavko Linic told the cabinet's meeting today that Adris was selected because of a better offer.

They explained that Adris offered a higher price per share and funds for recapitalisation twice as high.

The finance ministry is tasked with starting negotiations with the selected investor on signing an acquisition contract and on a shareholders' agreement regarding the CO insurer.

The ministry is expected to brief the government on the negotiations in 60 days' time.

Upon completion of the recapitalisation, Adris is to hold a 60% interest in CO and the government will hold 28%, Linic said.

On Monday, the finance ministry reported that it had received two binding offers for CO, one from Adris and the other from the Polish insurer.

In mid-July, the Croatian government decided to put on sale up to 50% of its 82.48% stake in the company and to ensure recapitalisation through a new issue of shares. Linic said then that the privatisation and recapitalisation of CO should be carried out in such a way that after the completion of this process no more than 30% of shares and no less than 25% plus one share remained in the government's ownership.

As many as 11 potential investors showed preliminary interest in CO but only three nonbinding offers were submitted.

After the government today made public its decision on the investor in CO, Adris Group management board chairman Ante Vlahovic expressed satisfaction adding that the Rovinj-based company proved again to a trustworthy investor.

"We did everything we could to make sure that CO will remain in the Croatian hands," Vlahovic told Hina.

(Hina)
 

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