Plans for capital increase at Asirom

InterAgro, the company owned by businessman Ioan Niculae, is planning to raise the share capital of Asigurarea Romaneasca Asirom to 48 million euros, from the current level of 17 million euros, insurance market sources say.

In the wake of this capital raise InterAgro will launch a public offering to purchase all the other shares of Asirom, the sources maintain. The move is meant to bolster Asirom”s position on the market.

When contacted by Ziarul Financiar, Ioan Niculae declined to comment on the information. InterArgo”s only statement read: “Financing sources for this kind of move are not a problem for the company since InterAgro SA, which is a member of the InterAgro group, had a turnover of almost 152 million dollars (117 million euros) in 2004 and operational profits of over 9 million dollars (7 million euros).”

InterAgro currently owns 40.5% in Asirom, while Niculae holds a 17% stake through the Astra Romana refinery. InterAgro would need 12.4 million euros to take part in the capital raise. Under insurance law, insurance companies can only increase their capital using cash.

The other shareholders in the company are Broadhurst Investment, which holds 19.7%, AVAS, which has 6.4%, Tiberiu Postelnicu, who owns 11%, and other shareholders, who together own 6.4%. Asirom is the second biggest player on the insurance market after Allianz-Tiriac Asigurari, with a volume of underwritten premiums for general and life insurance of 133 million euros (5,411 billion ROL) in 2004.

InterAgro recently hired a headhunting firm to strengthen Asirom”s management team.