I3CP invited to lend EUR 150 mln to troubled RO insurer City before taking it over
After the shareholders of troubled Romanian insurer City Insurance - save for the main shareholder Vivendi international that was lifted its voting rights - approved the capital injection, Netherland-based investment vehicle I3CP is invited to transfer the promised EUR 150 mln loan.
The shareholders also agreed on I3CP as the new majority shareholder - a change that pends the regulators’ approval, Economica.net reported.
After the EUR 150 mln is transferred, the Romanian market regulator ASF will allow I3CPto buy the majority stake (from Vivendi) as planned.
The sequence of operations was reportedly agreed among I3CP, ASF and the insurer’s shareholders.
The EUR 150 mln represents the money City Insurance needs to cover its liabilities generated by their contracts. Netherlands-based investment vehicle I3CP proposed on June 24 a deal involving a EUR 300 mln capital injection and credible partners - namely the Greek Church and, potentially, the European Bank for Reconstruction and Development (EBRD).
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.