Sava Re has acquired the majority shareholding in Energoprojekt Garant a.d., Begrade, for an undisclosed sum
Pursuant to the Rules of the Ljubljana Stock Exchange, d.d., Ljubljana and the Market in Financial Instruments Act, Sava Re, d.d., Dunajska 56, Ljubljana hereby announces the following:
Established in 1992, the company is a small Serbian insurer specialising in construction and liability insurance. Sava Re estimated that taking over the insurer would allow it to further diversify its Serbian non-life insurance portfolio (away from motor business).
Accordingly, Sava Re, d.d. and Energoprojekt Holding a.d., Belgrade signed a sales contract for 92.94% of the insurer Energoprojekt Garant a.d., Belgrade last November, with the contract being subject to a suspensive condition (obtaining all required approvals).
On 2 March 2018, Sava Re obtained approval from Serbia’s central bank, as well as from other regulators to purchase the above stake in the target. Thereby the suspensive condition for the acquisition was met. On 9 March 2018, a block trade was announced on the Belgrade stock exchange for 146,155 ENGR shares representing 92.84% of the share capital of Energoprojekt Garant a.d. Sava Re, d.d. will become the formal owner of these shares as soon as they are transferred to its account with the local securities clearing company. In accordance with Serbian law, Sava Re will announce its intention to take over the target.
After the acquisition of this majority stake and subsequent steps towards attaining sole ownership, Sava Re intends to merge the target with its existing subsidiary, the Serbian non-life insurer Sava neživotno osiguranje a.d.o., Belgrade, and then optimise the subsidiary’s capital structure.
Sava Re’s acquisition of this stake in the Serbian insurer is a further step towards implementing its strategy of strengthening its position in the markets where it is present.