Croatian tobacco and tourism group Adris has outbid Poland’s insurer PZU in the privatization process of insurer Croatia Osiguranje (CO), the country’s government announced.
PZU offered €126.5 million for a 50 percent share in Croatia Osiguranje
Courtesy of PZU
After a long bidding war, Adris emerged victorious by simply offering a higher price than the Polish company. According to Croatian daily Vecernji list, the latest Adris offer was €128.26 million (up from its €104.5 million bid) for some 40 percent of CO’s shares.
Meanwhile, PZU lowered its final bid to €126.5 million for a 50 percent share. The previous PZU offer had been much higher at €142.5 million.
But the Polish insurer decided to lower its bid after a due diligence process. “Our final offer reflects the company’s real value. ... During the analysis we found some crucial information that made us change our initial bid,” was the comment posted on the Twitter account of Michał Witkowski, PZU’s spokesperson.
Now PZU will have to set its sights on another insurer, as the company plans to spend up to zł.7 billion in the near future on acquisitions both in Poland and in the CEE region.
Croatia Osiguranje is the country’s biggest insurer, with a market share of around 35 percent. The Croatian government, which controls about 80 percent of Croatia Osiguranje, wants to retain between 25 and 30 percent of the company’s shares after the sale.
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