DZI sale and tender offer
This deal is a good example of the expertise of Alfa Finance Holding's team in the field of investment banking. In 2007, one of the leading financial groups in Europe, KBC Group, acquired 70% of the capital of the insurance company DZI for more than EUR 260 mn. In September 2007, KBC addressed to the minority shareholders a tender offer for the purchasing of all their shares. At that time, the insurer employed 975 people and experienced a significant growth, with a total gross written premiums amounting to EUR 117.6 mn. The estimated value of the deal was EUR 260 mn.
Bulbrokers Consulting, a leading consultant part of "Alfa Finance Holding", acted as financial adviser of the Seller. Bulbrokers Consulting participated in the preparation of the overall strategy and transaction documentation and assisted the Seller and the Bidders during their due diligence process and negotiations.
After the deal, Bulbrokers Consulting advised the majority shareholder KBC Insurance Limited (Belgium) on its tender offer for the share purchase from the remaining shareholders. The tender offer was for 18.79% of the capital with a total value of EUR 69.9mn.
The advisory services provided by Bulbrokers Consulting included preparation of the related documentation, communication with the regulatory body - the Financial Supervision Commission, as well as the organization of the entire process. Bulbokers, an investment broker also part of Alfa Finance Holding, acted as financial intermediary for the procedure.