Grupo Security Sets Share Price at Ch$190 For Capital Increase
This marks a new step for Grupo Security in the Cruz del Sur purchase process. The acquisition will enable the group to take a new leadership position in attractive, growing business segments within the financial industry.
In a meeting held today, the Board of Directors of Grupo Security set the price at Ch$190 per share for the capital increase involving 377 million shares that is currently underway, which was approved at an extraordinary shareholders' meeting in April.
The capital increase is intended to help finance the acquisition of the financial businesses operating under the Cruz del Sur brand. The CEO of Grupo Security, Renato Peñafiel, highlighted that “this capital increase occurs at an important time for Grupo Security, since we have reached a new stage in terms of the Group's earnings and our business areas have successfully consolidated their operations, which will be further strengthened after the purchase of Cruz del Sur. This provides an opportunity to improve the value offering for both our customers and the customers of the Cruz del Sur companies.
Based on the financial statements (FECU format) filed with the SVS, the Group's profit for the last twelve months ending March 30, 2013, totals Ch$52,619 million, equivalent to approximately US$ 111 million, which confirms the track record of growth that the company has maintained over the past few years.
Peñafiel added, “What we have seen over the past few months of work with Cruz del Sur has been tremendously promising. It makes us extremely confident in inviting our shareholders to continue to invest in our group and participate in this capital increase." Similarly, Peñafiel confirmed that the shareholders that signed the share transfer agreement have already committed to participating in the process.
With the integration of Cruz del Sur, Grupo Security will rank third among local life insurance companies measured by direct premiums in non-retirement insurance with 8.6% of the market, fourth in individual insurance policies with 11.2% and second in the insurance industry in terms of total direct premiums with 8.6%. This increase in business scale involves important commercial and operating synergies, which will positively impact Grupo Security's future earnings.