“This process is based on the memorandum of understanding with exclusivity clause signed on December 21, 2015. The due diligence procedures follow a transaction calendar which was also sent to the Financial Supervisory Authority. The investor interested in taking over Carpatica Asig has vast experience in the insurance industry and plans to develop and consolidate the company over the long term,” Carpatica Asig said in a statement.
Carpatica Asig, controlled by businessman Ilie Carabulea signed on December 21 a memorandum of understanding with an exclusivity clause with a “European strategic investor” interested in taking over and developing the company.
Carpatica Asig, based in Sibiu, started a financial recovery plan approved by Romania’s Financial Supervisory Authority ASF in September 2014, and valid until the end of 2015 but failed to observe the deadlines, so that ASF expressed skepticism over the investor interested in the takeover.
The company should have attracted a subordinated loan of minimum RON30 million and close a deal with a strategic investor by December 15.
Carpatica Asig has recently announced it hiked the share capital by RON10 million, to RON34.3 million and that it has significantly improved the financial indicators in the last 12 months.
The company’s shareholders include Atlassib Sibiu (92.77%) and Transcar Sibiu (6.64%), both held by Carabulea, as well as several private individuals (0.59%).
Carpatica Asig’s financial situation worsened after its owner and former general manager were placed under preventive arrest for corruption in January 2014.
Carpatica Asig started its activity in 1996 as ASA Asigurari Atlassib. The company has over 60 units and collaborates with 5,000 brokers.