Potential buyer of troubled RO insurer City promises EUR 300 mln and credible partners

Netherlands-based investment vehicle I3CP proposed the shareholders of Romanian troubled insurer City, others than the main shareholder that has its rights suspended (Vivendi International) a deal involving EUR 300 mln capital injection and credible partners, namely the Greek Church and, potentially, the European Bank for Reconstruction and Development (EBRD).

The offer reportedly expires within five days, as I3CP claims that the company's value is decreasing every day because of the bad publicity generated by the scandal, according to Economica.net.

Out of the EUR 300 mln, EUR 150 mln would come from I3CP and another EUR 150 mln from the Greek Church. The involvement of the EBRD as a shareholder of City is not mentioned as a done deal.

Romanian financial markets regulator ASF placed City Insurance (20% market share by revenues in 2020) under external management and set unprecedented fines for the company's management this month.

The capital deficit is close to RON 845 mln (over EUR 170 mln), according to official documents. The main shareholder (Vivendi International, owned by Dan Odobescu - the brother-in-law of former Social Democrat prime minister Adrian Nastase) had its voting rights suspended in the shareholder meetings.

(Phto source: Dreamstime.com)