Banca Agricola (the Agricultural Bank - BA) has to dump the 9.86% in one of the leading insurers on the Romanian market, Asirom, somehow over the next three months.
This was the decision made by Austria-based Raiffeisenbank, which bought the controlling interests in Banca Agricola. Asirom's controlling interests are held by businessman Ioan Nicolae, owner of InterAgro Trust, through several companies.
"When we first discussed the Raiffeisenbank and FRAI's takeover of the bank, Banca Agricola stock portfolio was evaluated and an attempt was made to find a solution to take over Asirom, but we eventually couldn't agree on the price. Therefore, 90 days after the ratification of the contract, Asirom must be out of Banca Agricola's portfolio," authorised sources told Ziarul Financiar.
The 10% in Asirom are worth some $3 million, according to analysts, such amount having been actually offered by an investment fund, Lindsell, managed by the US-based New Century Holdings, which also operates Broadhurst Fund.
In his turn, the main Asirom shareholder, Ioan Nicolae, through several companies he owns, made an offer for the stock held by Banca Agricola, but the amount of money was lower than the bid by Lindsell, the quoted sources say.
"We're interested in buying the 10% in Asirom put out by Banca Agricola," Ioan Nicolae told Ziarul Financiar, without volunteering the amount offered, though.
At the same time, apart from selling Asirom, Banca Agricola has to solve its problems with the Financial Investment Companies (SIF) in 90 days. During the General Shareholders Assembly (AGA) on April 21, the four SIFs still holding 21.85% in the bank vetoed the capital increase by 6,445bn lei and reportedly announced they would challenge this decision in court.
Asirom now has only one third of the non-life insurance market, compared with half five or six years ago and only one fifth of the life insurance market, as compared with three quarters the same time ago.
It still remains a powerful player on the insurance market, though, as it is the most famous company among the clients, especially when it comes to natural persons.
The company was established in late 1990, when ADAS, the State Insurance Administration, broke into three separate entities: Asirom, Astra and Carom, with the State as sole owner.
In 1996, the State Ownership Fund (SOF) took over 70% in Asirom, putting the rest up for mass privatisation to the company's employees or pensioners. In 1998, businessman Ioan Nicolae, owner of Interagro Company took charge, following a controversial transaction.
SOF decided to privatise Asirom by a share capital increase, which decreased its stake from 70% to 26.8%. This increase was an extremely intricate financial transaction.
The shareholding structure at the time was: Interagro (15.41%), Astra Romana Refinery (15.41%) controlled by Interagro, as well, SIF Oltenia (15.41%) and Banca Agricola (15.41%). Other shareholders held 11.5%.
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