Omniasig does not give up on Agras, but changes tactics

Insurance company Omniasig Bucharest resumed actions aimed at taking over the shares of farming company Agras. To this purpose, Omniasig launched a purchasing bid for 19.29% of the company shares, for the price of 3,300 lei per share, which is below the reference price that settled at 3,700 lei per share in the last trading session on Bucharest Stock Exchange.

Omniasig currently holds a 30.7% stake in Agras capital, a position reported in November last year. In case the new bid is successful, following the purchase of the stake held by Brimex Agro company in Agras, Omniasig will hold 49.99% of the shares, thus becoming the main shareholder of the company. On the other hand, according to sources within Banca Agricola (the Agricultural Bank – BA), the most important shareholder after Omniasig, it is unlikely for the bank to sell the stake it holds in Agras, due to at least two reasons.

First, purchasing Agras stake turned out to be a very good investment. Second, the bank officials see this stake as a strategic participation, taking into account that most of BA clients are insured with Agras, and most of the money flows of the insurance company are carried on through BA. The bid launched by Omniasig is the second of this kind initiated by an insurance company in an attempt to take over stakes within Agras. However, the price offered by Omniasig for the farming company shares is under the market price.

The tender will take place on Bucharest Stock Exchange over the period April 28-May 17 and will be mediated by Financiara Stock Agency. The first purchase bid for Agras shares was launched by Omniasig at the beginning of the year, when the insurance company planned to take over all the company shares for the price of 2,300 lei/share.

Subsequently, upon the swift price increase on the stock exchange, Omniasig raised the bid to 2,500 lei/share, but the reference price on the market amounted to 3,900 lei/share, so as this second bid did not have the anticipated success.