VIG reaches agreement with Hungarian state holding Corvinus

VIG reaches agreement with Hungarian state holding Corvinus

2 minute read

Aegon has taken note of the announcement issued today by Vienna Insurance Group AG Wiener Versicherung Gruppe (VIG) about the agreement reached between VIG and the Hungarian state holding Corvinus Nemzetközi Befektetési Zrt. (Corvinus) on the details of their cooperation which had been broadly defined in the Memorandum of Understanding dated December 23, 2021. The announcement reads as follows:

"[…] Under the cooperation, Corvinus is to acquire a 45% participation in the Hungarian VIG companies.

The Hungarian VIG companies will be held through the Hungarian VIG holding company (VIG Magyarorszag Befektetesi Zrt.) and two Dutch holding companies (Aegon Hungary Holding B.V. and Aegon Hungary Holding II B.V.). Corvinus will acquire a non-controlling minority interest of 45% in each of these three holding companies. The agreed purchase price for the three 45% participations in these holding companies amounts to about EUR 350 million.

98.64% of the shares of UNION Vienna Insurance Group Biztosito Zrt. will be contributed to the Hungarian VIG holding company. The two Dutch Aegon holding companies hold 100% of the shares in the Hungarian Aegon companies (insurance, asset management, pension fund and service companies). VIG will retain a controlling majority interest of 55% in these three holding companies. In a next step, it is planned to merge the three holding companies whereby the Hungarian VIG holding company is designated as the remaining central steering unit.

The closing of the transaction is subject to the necessary regulatory and competition approvals as well as the closing of the transaction with Aegon."

On November 29, 2020, Aegon agreed to sell its insurance, pension, and asset management businesses in Hungary, Poland, Romania, and Turkey to VIG for EUR 830 million. Aegon will continue to work with VIG to close this transaction, which is subject to local regulatory approvals.