Insurer-reinsurer Ardaf Cluj-Napoca has paid more than 100 billion ROL (2.7 million euros) for a building in Bucharest it has been renting for over a year from its main shareholder, Tender SA.
The acquisition will be financed from the company's own resources, according to the chairman of the Ardaf board, Octavian Manastireanu. Tender became the main shareholder in Ardaf in 2001, and now holds more than 70% in the insurer's capital, says Manastireanu.
"The shareholders already endorsed the transaction and the building was bought in December 2004. We are the owners now, but we have exceeded the sum of money that was initially approved and will have to organise a new meeting of shareholders to approve this," Manastireanu explained. "We feel this is an advantageous transaction for us," he added.
Insurance companies prefer to invest in buildings, as they have long-term commitments.
Businessman Ovidiu Tender would not comment on the deal. Ardaf's board has called an Extraordinary General Meeting of Shareholders for March 29-30, 2005 when the final price paid for the building is to be approved.
In line with preliminary financial reports, Ardaf saw gross premiums underwritten in general insurance last year rise by 54.6% (in euros) to reach 43 million euros (1,745 billion ROL).
Gross premiums underwritten in life insurance were up 25% in 2004 compared with 2003, reaching 1.5 million euros (62 billion ROL). ioana.leaua@zf.ro
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