EIG to launch buyout bid for Bulgaria's Euroins Insurance
The company will be delisted from the BSE if the bid is accepted
Euroins Insurance Group AD (EIG), a leading independent insurance group in Southeast Europe, will launch a buyout bid to acquire the minority shareholders' remaining stocks in Euroins Insurance AD, one of its Bulgarian insurance subsidiaries, listed on the Bulgarian Stock Exchange (BSE) - Sofia. EIG owns 90.07% of the company's capital.
The tender offer will be filed for regulatory approval at the Financial Supervision Commission (FSC) within the term, provisioned by the law - within 14 days after EIG has increased its stake in Euroins Insurance AD 's capital to over 90% of the voting rights on 31st May, 2017. Euroins Insurance Group AD's offer will be made for the remaining more than 1.6 million shares of Euroins Insurance AD, equal to a 9.9% stake. The price to be offered to the minority shareholders will be fixed according to the provisions of Public Offering of Securities Act and will be announced publicly after getting a regulatory approval for the tender offer by the Bulgarian Financial Supervision Commission. If accepted, the majority shareholder intends to write off "Euroins" AD by BSE - Sofia.
"The goal is EIG and Eurohold Bulgaria AD, its majority shareholder, to wholly consolidate their stakes in all their subsidiaries in Southeast Europe", Jeroen van Leeuwen, EIG's chief operational officer, said. EIG owns between 98 and 100 percent of the capital in its all other subsidiaries in Bulgaria (Euroins Life Insurance AD, Euroins Health Assurance AD and EIG Re AD), Romania, Ukraine and Macedonia. Eurohold Bulgaria AD owns 100% stakes in Eurolease Group AD, Auto Union AD and Euro-Finance AD.
"If the minority shareholders accept our tender offer, those stakeholders that are interested in the development of Euroins Insurance AD could follow up the company through the performance of the public-listed Eurohold Bulgaria AD, traded on the BSE -Sofia and Warsaw Stock Exchange. Eurohold Bulgaria AD consolidates the financial results of all EIG's insurance subsidiaries. Recently, we have been watching positive trends on the Bulgarian capital market and we hope this optimism will persist in order Eurohold Bulgaria AD to take advantage of the opportunities the market provides", Jeroen van Leeuwen commented.