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The seniors who run this Dutch insurance company have put the Eastern European business up for sale in a desperate attempt to raise cash to cope with the negative effects of the coronavirus pandemic. Even the operations in Romania will be abandoned.
With this change in proportions, the heavyweights that power Aegon are trying to increase profits in core markets. The information was provided by the sources of the Reuters news agency, cited by Agerpres.
Aegon-JPMorgan collaboration
The choice of the Dutch for this large-scale transaction in the profiling market was the American investment bank JPMorgan. Aegon works with JPMorgan and has had preliminary discussions with companies in the industry.
There was talk of the sale of the subsidiary, which is mainly focused on Hungary, but is also quite active in Poland, Romania and Turkey. In figures, in a first calculation, it is estimated that the transaction could be valued at around 650 million euros (not – 767.85 million dollars).
In the next auction, representatives of the insurers NN Group (Holland) and KBC (Belgium) expressed their interest in studying the presentation of bids for these assets. The famous German group Allianz also expressed interest in taking over the markets that Aegon left free.
I didn’t want the press to know
As in the case of large transactions between financial giants, the secret is well protected. However, this time, the information about Aegon’s intentions somehow leaked to the press.
In this context, it is not surprising that representatives of Aegon, Allianz, NN Group and KBC did not want to comment on the information in any way. It is understandable, given that there is a large amount at stake, and any detail can be used to reduce the value of this transaction.
Aegon offers general and life insurance in Hungary, where it has been present since 1992, when it acquired the former state insurer Állami Biztosító and then used its division as a platform for new acquisitions in Central and Eastern Europe.
Aegon CEO Lard Friese announced in August that he would review the company’s operations in some of the 20 markets in which it operates as part of its capital preservation efforts.
In 2018, the Dutch insurer sold its operations in the Czech Republic and Slovakia to the NN Group for 155 million euros ”, shows Agerpres.
photo explanation: Aegon headquarters (The Hague).
