The closing includes the purchase of two Dutch holding companies (Aegon Hungary Holding B.V., Aegon Hungary Holding II B.V.), which hold 100% of the shares in the Hungarian Aegon companies.
The closing of an 45% interest in the Hungarian business of VIG Group by the Hungarian state holding company Corvinus has been scheduled for 25 March 2022. The Hungarian state holding company will acquire a 45% interest in the Hungarian business of VIG Group, which will be managed by the holding company VIG Hungary Investment Company in the future. The VIG Group will retain a controlling majority and the operational management of the Hungarian company.
VIG received the approvals for the acquisition from the local Hungarian authorities on 17 and 18 March 2022 and therefore successfully completes the biggest part of the planned acquisition of the entire Aegon CEE business with the Hungarian part of the Aegon transaction.
The gross proceeds of the transaction amount to EUR 620 million. This completion is an important step towards the full closing of the sale of Aegon's insurance, pension, and asset management businesses in Central and Eastern Europe to VIG for EUR 830 million, as announced in November 2020.
The sales of Aegon's businesses in Poland, Romania and Turkey are expected to be completed in the course of 2022, subject to required local regulatory approvals.
"Today's announcement marks an important step in the transformation of Aegon as we narrow our strategic focus to select core and growth markets, and further strengthen our balance sheet", said Lard FRIESE, CEO Aegon.
"I would like to sincerely thank our employees in Hungary for their significant contribution to Aegon over the years".
According to preliminary figures, the premium volume of the Hungarian Aegon insurance company amounted to EUR 401 million and the profit before taxes was EUR 51 million in 2021. The around 1.000 employees serve more than 1,5 million insurance customers. Together with the existing VIG insurance company UNION, VIG Group will become the market leader in Hungary with a market share of over 19%.
"With the closing in Hungary, we will achieve our target of being among the top three in the market by the end of 2025 already in 2022 and take over the market leadership in Hungary. We acquire very well positioned companies that enrich our broad diversification and offer us new opportunities in asset management and pension fund business. These are two business areas that we want to intensify and expand as part of our ongoing strategy programme VIG 25," explains Elisabeth STADLER, CEO, VIG.
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