Horizon Capital, a leading regional private equity fund manager, has reached agreement with Belgian-Dutch group Ageas, formerly the Fortis Group, to acquire 100% of stocks of PJSC Fortis Life Insurance Ukraine.
"The transaction is subject to regulatory approval and is expected to be closed in the last quarter of 2010," Ageas said in a statement on Thursday.
The parties did not disclose financial conditions of the deal by mutual consent.
With the assistance of the new investor, Fortis Life Insurance Ukraine plans to expand the range of its insurance products, improve client servicing, and strengthen the company’s positions among the top insurance companies in Ukraine.
"This is Horizon Capital’s first investment since the onset of the financial crisis in late 2008 into the financial sector where it has already built a strong portfolio including Platinum Bank in Ukraine, MTBank in Belarus and Fincombank in Moldova, as well as Universalna Insurance Company in Ukraine," Horizon Capital said in its statement.
"The sale of our Ukrainian company is in line with the objective to streamline our portfolio against the strategic criteria we determined in September 2009," said Steven Braekeveldt, CEO Ageas Continental Europe, while commenting on the deal. "We are convinced that Fortis Life Insurance Ukraine will continue to capture the potential of the market in which it operates together with its new owner."
Natalie Jaresko, the co-managing partner of Horizon Capital, in turn said, "With the investment into Fortis Life Insurance Ukraine we continue to back sector leaders. The company has an effective business model and is well-positioned to capture a considerable share of an underpenetrated market in the future."
Ageas is an international insurance company, founded more than 180 years ago. Its business activities are grouped around four segments: Belgium, United Kingdom, Continental Europe and Asia. Internationally Ageas has a strong presence in the UK, where it is the third largest player in private car insurance. The company also has subsidiaries in France, Germany, Turkey, Ukraine, and Hong Kong.
Horizon Capital is a private equity fund manager that originates and manages investments in mid-cap companies with outstanding growth and profit potential in Ukraine, Belarus and the region. Currently, Horizon Capital manages three funds, Emerging Europe Growth Fund II (EEGF II), Emerging Europe Growth Fund (EEGF) and Western NIS Enterprise Fund (WNISEF), with over $600 million under management.
