UNIQA Takes Majority Stake in Credo-Classic - Increasing Holdings from 35% to 61%
ARTA has successfully completed the second-phase of the IC Credo-Classic’s merger with Austrian UNIQA Group. As a result, UNIQA Group has acquired an additional 26% holding and has become the major shareholder of one of the largest domestic insurance companies. Moreover, UNIQA Group increased its share and currently holds 80% share in UNIQA Life, a joint venture founded with the Ukrainian shareholders of Credo-Classic.
The first 35% share in Credo-Classic was acquired in April 2006 when a merger agreement was signed by the company’s major shareholders, with ARTA acting as a financial adviser. UNIQA Group intends to further increase its share in the Ukrainian insurance market.
According to Oleg Ganenko, Corporate Finance Director at ARTA, the Austrian shareholders could speed up their strategic planning for the companies upon acquisition of the majority shareholding and prompt the development of the most perspective insurance businesses with their expertise and advanced technologies and through additional investments. Oleg Ganenko says: ‘Although the market is highly competitive now, the Company will strengthen its financial position and take the lead in the Ukrainian insurance market.’
NOTE:
Founded in 1994, Credo-Classic is now a member of UNIQA Group (Austria). Credo-Classic is involved in more than 90 insurance businesses and holds 29 licenses issued by the State Commission for Regulation of Financial Services Markets in Ukraine. The Company’s authorized capital is UAH 65.2 million. In 2007, Credo-Classic reported more than $50 million of insurance premiums received.
UNIQA Group, one of the major insurance groups in Austria, acquired a share in Credo-Classic in May 2006. UNIQA is a leading insurance group in Central Europe. It is a major player in the Austrian insurance market with a market share of 22.48%.
In terms of financial reliability, Standard & Poor's consistently assigns A/Stable Outlook to UNІQA Group Austria.
ARTA Investment Groupincludes ARTA Investment Partners Ltd., ARTA Securities Ltd., and ARTA Assets Management Ltd. Since 2002, ARTA provides a full range of investment banking services including brokerage, corporate finance and asset management. ARTA has attracted approx USD 1.5 billion of investments to the local market.