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Aspis Holdings Pcl (ASP.CY) has successfully completed the EUR 90 mln capital injection into Commercial Value SA and in the process has become the largest shareholder in the rapidly expanding insurance company with extensive operations in Greece.
“We promised the Greek regulatory authorities that the capital injection would be completed in early September and I’m extremely pleased to note that this has happened,” Aspis Holdings CEO Lambros Christophi told the Financial Mirror.
During the month of August, Aspis managed to raise up to EUR 35 mln in new capital and by proceeding with the sale of its stake in Universal Life (EUR 26 mln) and using its own resources to complete the capital injection amounting to EUR 90 mln in record time.
By doing so, it managed to secure the permission of the Commission for the Supervision of Private Insurance (EPEIA) of the Hellenic Republic to lift all restrictions imposed on Commercial Value SA assets.
Aspis Holdings has in the process also become the single largest shareholder of Commercial Value SA with a 60% stake.
The capital increase of Commercial Value SA has strengthened the company’s capital base to EUR160 mln, becoming the third best capitalised company in Greece behind Ethniki (EUR 175m) and Interamerican (EUR165m).
Profit forecasts raised
Aspis Holdings also announced revised forecasts for 2008 and 2009, confirming the growth in operations and activities despite the difficult and highly competitive environment prevailing in all markets where it’s active.
Aspis Holdings is now forecasting EUR 250 mln turnover for 2008 with pre-tax profit at EUR 45.6 mln and net profit after minority interests at EUR 37.5 mln, well above the EUR 31 mln forecast made earlier in the year for 2008 profits and the EUR 30.29 mln audited profits reported for 2007.
Total assets are seen climbing to EUR 875 mln while shareholders’ funds are seen at EUR 292 mln with cash in hand and in the bank jumping to EUR 182 mln.
Flush with liquidity, Commercial Value SA is seen asking commercial banks for competitive bids to place funds on fixed deposit.
For 2009, Aspis Holdings expects total turnover to climb to EUR 277 mln with pre-tax profit seen at EUR 49 mln and net profits after minority interests at EUR 36.5 mln. Total assets are seen climbing to EUR 900 mln and shareholders funds at EUR 300 mln with cash in hand hovering around EUR 195 mln.
