The value of this transaction made on the Rasdaq market, amounts to RON 146 million (€46.79 million), according to the Austrian group. Prior to the deal, Nicolae owned 50 percent of Asirom through Interagro and another 8 percent through Astra Ploiesti. A VIG press release said yesterday it bought the stock from Interagro. Asirom's value is estimated at some €153 million.
"Together with the Vienna Insurance Group, we want to turn Asirom into one of the most important insurers in Central and Eastern Europe," Ioan Niculae said. He added he does not plan to sell the remainder of his shares.
He told Business Standard he will use part of the money to modernize his fertilizer factories in order to comply with EU requirements, and the rest to build the largest bio-ethanol plant in southeastern Europe, near the town of Zimnicea.
On Sunday, sources on the market told Business Standard VIG was to buy Niculae's shares for some €80 million.
When originally contacted by Business Standard, Ioan Niculae denied this information.
VIG General Manager, Gunter Geyer, said in a press release that purchasing a part of Asirom "significantly improves the group's position in this growing new Europe."
The transaction needs approval from Austrian and Romanian regulatory authorities in order to be finalized. According to Romanian legislation, VIG is compelled, upon taking controlling interest, to launch an initial public offer for the remainder of the shares.
During yesterday's stock exchange trading session, Asirom shares rose a staggering 22 percent, up to RON 1.22 (€0.38), following the 11.73 percent increase on Monday to RON 1 (€0.31), following news about the transaction.
The Asirom takeover will bring VIG a further 11 percent to the current 20 percent it has in the local insurance market share. The Austrian group directly controls Omniasig (97.78 percent) and Unita (99.99 percent).
Omniasig has a 50 percent share of Omniasig Asigurari de Viata, while Unita owns 75.7 percent of Agras. Omniasig is second on the domestic general insurance market, and the main company VIG owns in Romania. The group also owns 35 brands in 17 countries. VIG has been present on the Romanian market since 2001, when it took control of Unita.
QVT Fund, the main Asirom shareholder, sold some 13 percent of Asirom's shares by mid-June for some €21 million, and withdrew from the company's shareholding structure.
Asirom registered a RON 14 million profit (approximately €4 million), while the previous year the company registered some RON 36 million (€10 million) in losses. The company had total income of RON 638 million (€181 million), 7.8 percent more than in 2005, and estimates for 2007 indicate a 15-20 percent increase in revenues.
"Together with the Vienna Insurance Group, we want to turn Asirom into one of the most important insurers in Central and Eastern Europe Ioan Niculae Shareholder, Asirom
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