Minority shareholder in HDI Insurance challenging decision of regulator to permit Euroins Insurance Group to buy company
A minority shareholder and former board chairman of HDI Insurance Hanna Proskuryna has appealed to the district administrative court in Kyiv asking to void a resolution of the national commission for financial service markets regulation to permit Euroins Insurance Group AD (Sofia, Bulgaria) to acquire 89.29% of shares in public joint-stock company HDI Insurance (Kyiv), bringing its stake to 99.29%.
According to the claim, one of the arguments for voiding the decision of the commission is that at the moment of the third package of documents to the commission the permit issued by Ukraine's Antimonopoly Committee to acquire the controlling stake in HDI Insurance expired. The permit was issued on July 10, 2015. According to Ukrainian law, the deal is to be closed within one year.
The claimant has doubts that the buyer has enough funds.
As reported, the commission on June 16, 2016 and September 3, 2015 did not permit the Bulgarian company to acquire 89.29% of shares as the company failed to submit true information and the documents did not meet the requirements. The commission permitted to do this on July 28, 2016.
Euroins Insurance Group sought to build up a 99.3% stake in HDI Insurance in August 2015 under an agreement with Talanx International AG.
Euroins' share of the Bulgarian, Romanian and Macedonian market is around 7%. It is subsidiary of Eurohold Bulgaria providing non-bank financial services and asset management services.
Public joint-stock company HDI Insurance has been operating on the Ukrainian market since 1992. From July 2008, the key shareholder in the company was HDI-Gerling International Holding AG, part of Talanx Group.