Raiffeisen plans to reduce its participation in UNIQA

RZB plans to reduce its participation in UNIQA (press release):

– Raiffeisen Zentralbank Österreich AG (RZB) intends to sell around 17.64 per cent of its shares in UNIQA Insurance Group AG

– RZB’s share in participation at 8.64 per cent at closing of transaction

– UNIQA remains important part of RZB Group and essential partner in the insurance business also after partial sale

Raiffeisen Zentralbank Österreich AG (RZB) and UNIQA Versicherungsverein Privatstiftung (UNIQA Privatstiftung) are in advanced negotiations to conclude an agreement (Memorandum of Understanding), after which UNIQA Privatstiftung is to acquire part, around 17.64 per cent in total, of RZB’s participation in UNIQA Insurance Group AG.

The Supervisory Board of RZB approved the key points of the intended transaction on 25 July 2016.

Following completion of the transaction, RZB would continue to hold a participation of around 8.64 per cent in UNIQA Insurance Group AG. It was agreed that the potential purchase price would be kept confidential. The implementation should take place in 2016.

The planned transaction would have a positive effect on RZB’s common equity tier 1 ratio (transitional) of around 60 basis points and on RZB’s common equity tier 1 ratio (transitional) of around 40 basis points. The reduction in the UNIQA participation is expected to have a negative effect of approximately EUR 130 million on RZB’s 2016 consolidated profit pursuant to IFRS.

“We appreciate UNIQA as an essential partner in the insurance business. Currently, we are evaluating measures to simplify our group structure and to adapt the group to ever increasing regulatory capital requirements. Our well-proven sales cooperation with UNIQA in Austria and abroad will not be affected by this step”, says RZB CEO Walter Rothensteiner.

In the event of full agreement between the negotiating parties, the conclusion of implementing contracts and authorization or approval by the responsible authorities, including a positive assessment by the Austrian Takeover Commission, would still be required for the execution of the transaction.