Ljubljana, 09 May (STA) - The Securities Market Agency has approved the recapitalisation prospectus of Pozavarovalnica Sava under which the reinsurer plans to issue EUR 55m-worth of shares. The issue price per new share will range from EUR 7 to EUR 9 and will be published on 21 May.
The reinsurer will collect non-binding bids from invited existing shareholders, large investors, institutional investors and an invited investor in the period up until 20 May. The offering of new shares is scheduled to conclude on 21 June 2013, Pozavarovalnica Sava said Thursday in a posting on the website of the Ljubljana Stock Exchange. The company will hold a press conference tomorrow to present details.
The proceeds from the recapitalisation will be used to finance the purchase of insurer Zavarovalnica Maribor (ZM), which the reinsurer and the state-run SOD fund agreed to buy at the end of last year. The price for the 50.99% share in ZM was EUR 65m.
After the acquisition, Pozavarovalnica Sava and SOD own 99.67% of the ZM. The offer for the remaining 0.33% of shares is due to be published this month. Pozavarovalnica Sava will also purchase SOD's share in ZM, as the fund entered its ownership structure only temporarily.
The takeover is to be completed this year, making the Pozavarovalnica Sava's parent group, Sava Re, the second biggest insurance group in SE Europe.