Listing won't happen for at least a year because of Solvency II uncertainty
Groupama will delay its flotation by at least a year because of uncertainty surrounding Solvency II, says group chief executive Jean Azema.
Azema said an initial public offering “won’t happen until we know the Solvency II rules," adding that nothing would happen for at least a year.
“We don’t need a listing to reinforce Groupama’s shareholders’ equity. We need it if we have to make acquisitions," he said in an interveiw in Brussels yesterday.
The flotation could eventually see Groupama offer a share deal for its 800 UK staff, and staff worldwide.
Groupama believes the float will help fund a 'transforming acquisition' which would add between add 6 billion euros to 7 billion euros in revenue. Target markets include Spain, Italy and Central Europe.
Introducing Solvency II as of January 1, 2013, “would be aberrant for our business model and it would be aberrant to have to sell equity holdings too quickly,” Azema said.
Groupama is aiming for a six-year transitional period to introduce Solvency II.
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