Aspis acquires insurance division of Proton Bank

Aspis Holdings Public Company (ASP.CY) announced the acquisition of 92.71% of Proton Insurance SA against EUR7.8 mln from Proton Bank SA with a downpayment of EUR3 mln.
Proton’s turnover stood at EUR 11.22 mln in the first half and EUR 39.65 mln in 2007, its profitability reached EUR 80.500 in the first half and EUR 64.000 in 2007, while its net book value amounted to EUR 6.6 mln.
The goodwill resulting from the acquisition of Proton is of EUR 1.2 mln, which will be evaluated (impairment test) at the end of each year pursuant to the International Financial Reporting Standards 3.
There is also an agreement for the purchase of two existing Convertible Bond Loans that are currently provided to Proton by the Bank and a third party against EUR 5.0 mln with a payment in advance of EUR 2.50 mln.
Aspis Holdings said the agreement pertains a 20-year exclusive Bancassurance agreement between the Company and the Bank according to which:
i. The subsidiaries will be able to distribute their bancassurance products via the Bank’s branch network.
ii. The Company and the Bank will launch new bancassurance products with competitive terms, which will be distributed exclusively via the Bank’s branches.
iii. The Company has the right to assign its rights either to associated companies or to third parties.
iv. The Bank will receive a lump sum commission for the bancassurance agreement of EUR 14.0 mln, payable in 16 six-month instalments.
The agreement is subject to the approval of the Greek competent authorities and the Commission for the Protection of Competition in Cyprus.
The acquisition of Proton Insurance and the exclusive bancassurance cooperation with the Bank is expected to affect positively the income and the profitability of the Company and its subsidiaries.