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CIG Pannónia, Opus to cease cross-ownership

Insurer CIG Pannónia and holding company Opus Global on announced plans to cease their cross-ownership, state news wire MTI reports.

 CIG Pannónia will propose to shareholders at an extraordinary general meeting on December 21 a buyback of CIG Pannónia shares owned by Opus and the sale of Opus shares held by the company, the EGM agenda posted on the website of the Budapest Stock Exchange shows.

CIG Pannónia would buy 23,607,065 of its own shares, slightly more than the 23,466,020 shares owned by Opus, if the proposal is approved.

The purchase would cost CIG Pannónia about HUF 5.1 billion, calculating with the shareʼs closing price on Thursday.

CIG Pannónia would sell 6,844,255 Opus shares at a minimum price determined by the closing price on November 27, minus 10%, under another proposal.

The stake has a market value of about HUF 2.1 bln, calculating with the closing share price on Thursday.

CIG Pannónia would use the proceeds from the sale of the Opus shares as well as from the planned sale of a 16% stake in MKB-Pannonia Fund Management to fund the buyback of its own shares.

In a separate disclosure on Thursday, Opus confirmed it is negotiating with CIG Pannónia "with the same will, to reshuffle their existing shareholdings".

In its Q3 earnings report, CIG Pannónia disclosed a HUF 1.3 bln loss generated by a forged reinsurance contract for suretyship insurance in Italy signed by its general insurance unit EMABIT.