Government lowers INSIG price
27/06/2011 16:35
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After three years of failed attempts for selling the only state owned
insurance company, INSIG, the government was obliged to change the
privatization laws by removing the limit of the minimal price.
“This price was a reassessment before the financial crisis, but it was impossible to continue with that. The reality showed that it needed to be changed, also with a suggestion from international advisers”, sais Edmond Spaho, Chairman of the Commission of Economy.
The minimal value for 100% of the shares was assessed some years ago by the financial giant KPMG, with a total of 40 million EURO. The government had placed a condition that the company should not be sold for less.
“The Ministry of Finances consultant advised us that this reference should be used for opening way to a new evaluation before its sale”, said Linda Rusmali from the Ministry of Finances.
In December 2008, the government announced the sale of 60% of the shares to an American company for 25 million EUR. But the company withdrew at the last moment and did not pay.
Although the insurance market has increased with several times since the last time that INSIG was reassessed, paradoxically, the value of this company went down. The company has continued to lose terrain each year, and currently owns only 8.6% of the market.
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