Kardan NV (TASE: KRNV;AEX:KARD) sub-subsidiary TBIH Financial Services Group NV has signed an MOU to acquire at least 60% of Sigma Albania SH for €12.9 million. Sigma is Albania’s second largest insurance company, providing mainly elementary insurance. It wholly owns Sigma Macedonia and has an office in Kosovo, Sigma Kosovo. Closing the deal is subject to due diligence.
TBIH also obtained a four-year option to acquire the rest of Sigma Albania at a price to be determined by a formula derived from, but no less than, the present price and subject to Sigma’s results.
TBIH said that the acquisition of Sigma Albania is part of its business strategy to enter new markets with low insurance penetration rates, which give the markets high growth potential.
Kardan subsidiary Kardan Financial Services NV owns 40% of TBIH and 89% of TBIF Financial Services BV. Kardan will owns 89.5% of Kardan Financial Services when its closes its deal with Wiener Stadtische Allgemeine Versicherung Aktiengesellschaft (WS) (ATX:WST) (Vienna Insurance Group).
Published by Globes [online], Israel business news - www.globes.co.il - on March 18, 2007
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