Today the CR government approved the winning bid for sale of 66% of the share held by EGAP in Commercial Credit Insurance Company EGAP (KÚP) to a strategic partner, submitted jointly with the Belgium credit insurance company Ducroire - Delcredere SA. N.V. and Italian credit insurance company SACE BT SpA (Ducroire & SACE).
The winning bid has been recommended to the government by the interdepartmental tender committee consisting of representatives of the involved ministries, both the EGAP´s Board of Directors and Supervisory Board, upon assessment of the binding bids bases on one single criteria - the offered purchase price.
The price offered by Ducroire & SACE for 66% share in the amount of CZK 738.3 mil. was the highest and proves how highly the strategic partner evaluates the KÚP position on the credit insurance market in the Czech Republic.
Prior binging bid submission the bidders for the available share in KÚP, including Coface French credit insurance company and Atradius Spanish-Dutch insurance company in addition to Ducroire & SACE, had to prove their interest and capabilities enabling and supporting further development of KÚP´s products and extension of its services to the benefit of the existing and new clients. In addition the bidders were required to demonstrate their financial stability and technical conditions necessary for further long term cooperation.
The need for entry of a strong strategic partner to KÚP explicitly resulted from analysis of credit insurance market development trends in Europe and the rest of the world and from the previous development of the Czech credit insurance market. EGAP expects from the majority shareholder to be able to share high demands on credit insurance company capital availability, modern computer and communication technology and that the partner will enable KÚP to access extensive international databases including information on debtors. Upon completion of the share sale KÚP will become a member of the new network of European commercial credit insurance companies - CONCERTO, which is the fourth largest network on the European market and operates on the basis of a decentralized structure protecting independence and national characteristics of its members.
EGAP was assisted in the selection of the strategic partner by PricewaterhouseCoopers Czech Republic as for the financial part and Cameron McKenna as for the legal part of the deal.
EGAP will continue in provision of credit insurance with state contribution exclusively for covering market unsecured (both commercial and political) risks of non payment related to export loans, pre-export financing loans, foreign investments of Czech legal entities and export contract related Bonds.
Spokesperson for EGAP