TU Europa S.A. and Getin Noble Bank SA, following consultations with UniCredit CAIB Poland SA as the Offeror, determined yesterday the final issue price for series H shares and the sale price for the existing shares at PLN 152 per share.
The final number of shares offered under the retail investors tranche will be 90,000 and under institutional investors tranche - 3,055,400. It means that to acquire the new shares and the existing shares, investors are ready to pay in excess of PLN 478m. Following allotment of the above shares, free float of the insurer will reach around 33.5%, with 66.5% of EUROPA shares remaining in the hands of Getin Holding.
"We are very satisfied with the results of the road show, the reaction of investors, assessment of the companies and attractiveness of our offer," said Jacek Podoba, President of the Board of TU Europa S.A. and TUnŻ Europa S.A. "It is undoubtedly a proof of appreciation for the effects of our activity so far as well as a sign of trust in the ambitious plans of development of both companies in the future. Increasing our capital will enable us to reinforce Europa as bancassurance leader in Poland and will strengthen our relations with the financial sector, including all leading banks which for many years have been working with Europa Group companies."
Allotment for institutional and retail investors will be held on 27 September 2010. The company plans to start quotations of allotment certificates on the WSE around 8 October 2010.
The Europa Group is the leading insurance company of the bancassurance sector in Poland. Europa has been recording dynamic growth for many years now. In 2009 it was TU na Życie Europa S.A. which was ranked the second life insurance company on the Polish market (gross premiums written in accordance with Polish Accounting Standards, in accordance with KNF data for 2009).
As a result of its consistently followed strategy, the Europa Group closed 2009 with a record net profit exceeding PLN 120m (consolidated net profit in accordance with IFRS) and its effectiveness in 2009 measured as return on equity (ROE) reached 38.6%, much above the ROE for the entire insurance sector (18.45% in accordance with [PAS]/[IFRS])*. The effectiveness of the company's activities was also reflected in its results for the first half of 2010 when the Europa Group recorded further significant growth. Net profit reached PLN 70.3m (in accordance with IFRS), up by as much as 25% on the corresponding period of last year (PLN 56.2m in accordance with IFRS). New sales in the first half of 2010 exceeded PLN 2.96bn in gross premiums written (in accordance with PAS)**, nearly approaching the PLN 3bn of premiums written in the entire last year.
*KNF data for 2009; results of the sector in accordance with PAS, results of the Group in accordance with IFRS. ROE for the entire sector and the Europa Group calculated using the formula: return on equity = ratio of annualized net profit for a given accounting period to equity at the beginning of the accounting period.
**The Group offers products which do not transfer a significant insurance risk (certain products with a guaranteed rate of return and
unit-linked products); therefore, such products do not meet the definition of insurance contract under IFRS 4 and have been classified
as investment contracts measured in accordance with IAS 39 requirements. Polish Accounting Standards do not contain such restrictions and therefore data on gross premiums written under PAS fully reflect the sales generated by the Group.