Czech investment fund PPF Investments has bought 56% in insurance company ARDAF following a 35 million euro deal with Tender SA, held by businessman Ovidiu Tender. PPF Investments conducted this transaction through Sabile Limited, registered in Cyprus, which bought 14.6% in ARDAF from lawyer Daniel Voicu last week.

"Todayes acquisition of the controlling interests in ARDAF is a crucial transaction for PPF Investments on the Romanian market. It is a strategic investment, through which we intend to turn the company around, and turn it into a key factor in the insurance sector in Romania," Pavel Kuta, managing director of PPF Investments stated. As a result of this deal with Tender SA conducted through Sabile, PPF Investments has increased its stake to nearly 70% of ARDAFes share capital. The acquisition of the insurance company by Sabile had previously been approved by the Insurance Supervision Commission and is to be approved by the Competition Council.

Sabile Ltd is the company that loaned Tender SA group part of the money it needed to subscribe during the 30 million-euro capital increase ARDAF carried out and completed at the end of January. This was needed to bring the company back on track. Tender SA pledged its controlling interests in ARDAF as security for the loan.

CSA placed the company under special supervision in mid last year due to the decline in the liquidity level below the limit allowed. Lawyer Radu Cocea took over as manager at the time, being appointed by the CSA to the position. ARDAFes special administration ended in January, after its share capital increased.

"I sold the stake in ARDAF to PPF for 1,300 ROL per share, so that the deal was worth 35 million euros in total. I got out of (the) insurance (business) and I will invest the money in energy and real estate, where I have a number of projects," businessman Ovidiu Tender