This deal is "in the family", so to speak, as the seller is Czech fund PPF Investments, which took over Ardaf and RAI last March.
Generali PPF Holding, a joint venture between groups Generali (Italy) and PPF (Czech Republic), announced the takeover of insurers Ardaf and RAI from PPF Investments on Wednesday.
The value of the deal was not disclosed, but market sources believe it revolved around 80m euros. ZIARUL FINANCIAR wrote about this acquisition as far back as February, quoting market sources.
Generali PPF reunites the two groups' CEE operations and also owns Generali Asigurari domestically, which had a 5.3% market share in late 2007. After taking over Ardaf and RAI, a deal for which the group is awaiting the authorities' approval, Generali PPF's market share will reach 11.7%.
"Romania is a strategic market for us and one of the EU markets to boast the biggest growth in recent years. In the next few years, the country's economic conditions will further support the two-digit increase of the insurance market. This deal will double our share of the Romanian market, to 11.7%," stated Sergio Balbinot, CEO of Generali group.
PPF Investments, which sold the stakes of 72.7% in Ardaf and 99.9% in RAI to Generali PPF, took over the 2 companies last March. Ardaf was bought from businessman Ovidiu Tender, with the sum the Czechs paid for his 56% stake standing at 35m euros. A stake of 14.5% in Ardaf was acquired from lawyer Daniel Voicu for around 7.6m euros.
In the same period, PPF Investments also bought RAI Asigurari, a small company, market leader for health insurance for foreign travel, with 8m-euro turnover last year. The seller in this case was the Tudor family. Subsequently, Daniel Tudor was appointed as chairman and general manager of Ardaf.
After being taken over by PPF Investments, Ardaf managed to cut its losses by 61% fr
