BA-CA sells stakes in UNION and CA Versicherung AG to Wiener Städtische
- Systematic concentration on core business.
- BA-CA reduces its shareholdings to 10 per cent each.
Bank Austria Creditanstalt (BA-CA) has today accepted the bid of Wiener Städtische Allgemeine Versicherung AG (WSV) for buying shareholdings in CA Versicherung AG and Union Versicherungs-Aktiengesellschaft (UNION). Under the deal, BA-CA will sell 40 per cent in CA Versicherung AG and 23.3 per cent in UNION. As for the shareholding in UNION, ERGO International Aktiengesellschaft (ERGO-Versicherung), a shareholder in UNION, has a right of first refusal under a syndicate agreement in respect of 50 per cent of the shares offered for sale. ERGO-Versicherung may exercise its option within a specified period of time.
Subject to the approval of the antitrust authorities, the closing of the transactions will probably take place in the fourth quarter of 2003. BA-CA will realise a book profit of approx. EUR 75 million on the transactions, part of which will be allocated to a restructuring provision for one-off expenses to press ahead with the further cost-cutting programme.
By reducing its stakes in the two insurance companies BA-CA continues its strategy of systematically shifting the focus on its core activities. However, BA-CA will retain a strategic interest in both companies of 10 per cent each in order to ensure continuity in the sales cooperations.
Enquiries: Bank Austria Creditanstalt Group Public Relations
Peter N. Thier
Tel. +43 (0) 5 05 05 ext. 52371