ASA KINDLUSTUS AS

ANNOUNCEMENT

16.11.98

 

AB KINDLUSTUSE GRUPP INCLUDES A STRATEGIC INVESTOR

 

AB Kindlustuse Grupp, which is the main shareholder of ASA Kindlustuse AS, 

will finish in November the negotiations with two potential Western financial 

investors in order to expand the circle of the owners of AB Kindlustuse Grupp.

 

The basis for the negotiations is the action strategy of AB Kindlustuse Grupp to

include such international partner whose field of activity, financial 

standing and good reputation would help to capitalize the insurance companies of 

AB Kindlustuse Grupp by acquiring funds from the international stock exchanges, 

in case there is a need for it in the future. The strategic investor of AB 

Kindlustuse Grupp will acquire at least one third of the company'y share capital. 

Depending on the partner, there is also a possibility of the sale of the shares 

as well as the expansion of the share capital.

 

One of the potential investors is an international investment company listed 

on the free market of the London Stock Exchange (OFEX-market), which is 

represented on the negotiations by a London-based investment company First

Western Limited. Since the above-mentioned investor has a liability to 

forward the information also to the London Stock Exchange, then according

to the agreement between the parties, AB Kindlustuse Grupp can disclose its name 

only after a final agreement is reached.

 

The other potential investor is an investment company TBI Holding Company NV,

which is owned by USA international financial corporation Bankers Trust Ltd and 

a financial group from Israel. TBI Holding is active on the East European markets,

concentrating mainly on the real estate and insurance investments. TBI Holding

owns a life insurance company in Bulgaria and a risk- and life insurance company

in Romania. The negotiations are held in order to acquire insurance companies in

Estonia and Poland.

 

AB Kindlustuse Grupp owns shares in the following companies:

ASA Kindlustus AS (50,6% of the shares), AB Elukindlustuse AS (60,4%), 

claims handling company Quex (60%) and development company AB 

Intech (70%).

 

 

Nadja Tarmak

AB Kindlustuse Grupp

Manager of Finacial Division

Tel. +372 644 0542

 

Additional information: Leonid Apananski

Chairman of the Supervisory Council of ASA Kindlustus AS, 

Chairman of the Supervisory Council of AB Kindlustuse Grupp

Tel. +372 631 3849