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UK's United Capital pulls out of deal to buy Bulgarian pension fund Doverie from Austria's VIG

January 31, 2014

UK-registered United Capital backed out of the deal to buy Bulgaria's largest pension fund Doverie in December, the CEO of Vienna Insurance Group (VIG), Peter Hagen, was quoted as saying by Reuters on Jan 29. VIG owns 93% of Doverie. Hagen said that Doverie's net profit rose to EUR 8mn last year from 2012's EUR 6.5mn . In July 2013 , United Capital revealed plans to file for regulatory approvals with the Bulgarian authorities on the planned acquisition and a month later said that it had acquired VIG's share in Doverie for an undisclosed sum. The prospective deal raised concerns in Bulgaria due to the lack of information about the buyer's ownership structure, and the pension fund's management board resigned in protest, while the government urged the local financial regulator to halt the deal if it lacks transparency. Doverie's assets amounted to BGN 1.98bn ( EUR 1bn ) as of end-September 2013 . The company manages the retirement accounts of around 1.25mn Bulgarians.

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Source: IntelliNews - Weekly Reports

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