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€220 mln DDOR Novi Sad sale contract signed
Belgrade,
30 November 2007
Director of the Serbian Deposit Insurance Agency Milorad Dzambic and CEO of Fondiaria SAI Fausto Marchionni signed a contract selling 83.3% of the capital of insurance company DDOR Novi Sad worth €220 million.
Fausto Marchionni, Italian Ambassador to Serbia Alessandro Merola, Mirko Cvetkovic, Slobodan Ilic and Milorad Dzambic
Serbian Minister of Finance Mirko Cvetkovic said that the Italian company took over socially-owned part of DDOR as well as a smaller amount of shares at the price of €125 per share, or eight times above nominal value.
Cvetkovic noted that DDOR’s socially-owned part was 36.96% so the state will get €97 million, 10% of which will be transferred to the Guarantee Fund, while €85 million to €90 million will go to the budget and half of that sum will go to Vojvodina.
He also said that now almost two-thirds of insurance market in Serbia is privately-owned.
President of the tender commission for sale of DDOR Novi Sad Slobodan Ilic stated that implementation of the contract is expected within next 60 days, after which the shareholders assembly of DDOR Novi Sad will decide on the distribution of free shares to employees, former employees and employees in the amount of nearly €373 per year of employment.
They will get around 6.5% of DDOR’s total assets, the same percentage will go to the Privatisation Registry, and the rest belongs to remaining small shareholders, Ilic said.
According to him, Fondiaria SAI is obliged to offer the same price per share to small shareholders within the period of 270 days.
Marchionni stressed that the acquisition of DDOR Novi Sad is one of first steps of Fondiaria in its internationalisation strategy.
He stressed that total value of Fondiaria SAI is nearly €35 billion.
DDOR Novi Sad has a share of 30% on the Serbian market, and its total value in 2006 was estimated at €5.02 billion. It has nearly 100 offices and employs 2,275 employees.
Fondiaria SAI is third largest insurer in Italy and was established in 2003 when Fondiaria and SAI merged.
Cvetkovic noted that DDOR’s socially-owned part was 36.96% so the state will get €97 million, 10% of which will be transferred to the Guarantee Fund, while €85 million to €90 million will go to the budget and half of that sum will go to Vojvodina.
He also said that now almost two-thirds of insurance market in Serbia is privately-owned.
President of the tender commission for sale of DDOR Novi Sad Slobodan Ilic stated that implementation of the contract is expected within next 60 days, after which the shareholders assembly of DDOR Novi Sad will decide on the distribution of free shares to employees, former employees and employees in the amount of nearly €373 per year of employment.
They will get around 6.5% of DDOR’s total assets, the same percentage will go to the Privatisation Registry, and the rest belongs to remaining small shareholders, Ilic said.
According to him, Fondiaria SAI is obliged to offer the same price per share to small shareholders within the period of 270 days.
Marchionni stressed that the acquisition of DDOR Novi Sad is one of first steps of Fondiaria in its internationalisation strategy.
He stressed that total value of Fondiaria SAI is nearly €35 billion.
DDOR Novi Sad has a share of 30% on the Serbian market, and its total value in 2006 was estimated at €5.02 billion. It has nearly 100 offices and employs 2,275 employees.
Fondiaria SAI is third largest insurer in Italy and was established in 2003 when Fondiaria and SAI merged.
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