11 December 2012
Signing of the Share Purchase Agreement for 51% of Zavarovalnica Maribor
Pursuant to the Rules of the Ljubljana Stock Exchange, d.d., Ljubljana and the Market in Financial Instruments Act, Sava Reinsurance Company d.d., Dunajska 56, 1000 Ljubljana, hereby announces the following:
On Tuesday, 11 December 2012, Nova KBM, Sava Reinsurance Company and the Slovenian Restitution Company (SOD) signed a share purchase agreement for the 50,99% share of the bank in Zavarovalnica Maribor. Sava Reinsurance Company will invest EUR 15 million for an additional 11,79% share, increasing its total shareholding to 60,47%. SOD will contribute EUR 50 million to achieve an ownership of 39,21%. The signing of the share purchase agreement will conclude the acquisition process started by Nova KBM on 17 August this year. Nova KBM will continue to market the products of Zavarovalnica Maribor, while starting discussions on further co-operation. The management of all three companies see this transaction as a positive signal for all stakeholders of the companies as well as for the broader financial community.
By acquiring the remaining share of Zavarovalnica Maribor, Sava Reinsurance Company will become the second largest insurance group in the Western Balkans. We estimate that Zavarovalnica Maribor will contribute both to better financial stability and stronger long-term growth of the Sava Re Group.
Sava Reinsurance Company is acquiring the 50,99% share in Zavarovalnica Maribor together with the Slovenian Restitution Fund, who is planning to hold the shares in Zavarovalnica Maribor up until the recapitalisation of Sava Reinsurance Company is completed. The General Meeting of Shareholders of Sava Reinsurance Company, where shareholders will vote on increasing the capital of the Company by EUR 55 million, has been called for 11 January 2013, while the sale of shares is scheduled to be concluded by the end of April 2013. The funds raised in the recapitalisation process will be used by Sava Reinsurance Company to purchase the shareholding of the Slovenian Restitution Fund in Zavarovalnica Maribor. In the recapitalisation process, existing shareholders of Sava Reinsurance Company will have a pre-emptive right to purchase shares. The recapitalisation will proceed in a number of rounds. Since the convocation of the General Meeting of Shareholders, Sava Reinsurance Company has made inquiries about the potential interest of financial investors to purchase recapitalisation shares and has perceived considerable interest.
Attached to this announcement is a presentation, presented at the press conference. The full investment story will be published on SEOnet and at www.sava-re.si on Friday, 14 December 2012.
This announcement with the attachment will be available on the Company’s website at www.sava-re.si, at least five years from the date of the announcement.