The International Insurance Consortium (IIC), the Netherlands-based company that showed interest in acquiring Carpatica Asig, has announced on Tuesday that has stopped the completion of the purchase of all shares of the Romanian insurance company, a press release informs.
This implicates that IIC Group have also withdrawn its application with the Financial Supervisory Authority (ASF) to approve its 100 percent shareholding in the company.
“IIC Group had a clear view on the necessity of a revitalisation plan for Carpatica promising a new future. Since the special status of Carpatica being placed under special management by the Guarantee Fund for the Insured (FGA), IIC Group found itself in a situation in which it was denied any further access to crucial and relevant information. In this unusual communicative blockade it moreover appeared to be impossible to set up a useful cooperation with those in charge of management and operations,” the release reads.
At the same time the situation of Carpatica was further deteriorating and the figures as presented in the initial phase could not be taken as a basis for recovery anymore.
“As a consequence the implementation of the recovery plan appeared to be far away. IIC Group has therefore concluded to withdraw from the Carpatica Asig project,” the Dutch company, focused on insurance companies in Eastern and Southeast Europe, points out.
On March 3, ASF decided to ‘penalise’ the company by withdrawing the authorization of Carpatica Asig board members and the members of the executive management, temporarily replacing the management with the Guarantee Fund for the Insured. The ASF penalty comes as businessman Ilie Carabulea and his son, Oprea Carabulea, along with five others in Carpatica management, namely Angela Toncescu, Liviu Stoicescu, Maria Cosa, Georgeta Crideanu and George Nasarau were detained by DIICOT Sibiu as they allegedly have constituted an organized criminal group.
Carpatica was in the media attention during recent months due to lack of capital. However, Jacob Westerlaken, managing director of IIC, announced at that time the company he represents plans to adequately capitalize the company after receiving all necessary approvals.