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 UTRECHT, The Netherlands and BRUSSELS, Belgium, Oct. 28 /PRNewswire/ -- Following the signing on October 4, 1993 of the final agreement between Fortis and ASLK-CGER-Holding relating to the purchase by Fortis of 49.9 percent of ASLK-CGER-Bank and ASLK-CGER-Insurance for a sum of BEF 34.93 billion, the complete financing plan has now been determined.
 Financing will be effected by the parent companies of Fortis and its operating companies furnishing BEF 15 billion and BEF 19.93 billion respectively in the following manner:
 -- N.V. AMEV will furnish BEF 7.5 billion from its own equity;
 -- AG Group will furnish BEF 7.5 billion by increasing its capital
 and using part of the increase for this purpose
 -- the Fortis companies will provide BEF 19.93 billion, which will
 be drawn from the funds generated, inter alia, by the sales of
 shares in Generale Bank and Banque Bruxelles Lambert which took
 place earlier this year.
 Increase In Capital of AG Group
 The Board of Directors of AG Group has decided to increase the company's capital, through its authorized capital, by issuing a minimum of 4,001,054 and a maximum of 4,125,200 new shares. This increase in capital will be effected with a right of pre-emption for existing shareholders. The shares will be entitled to dividend from January 1, 1993.
 AG Group, whose shares are listed on the Brussels and Antwerp stock exchanges and which have since recently been traded via SEAQ International in London, wishes to allow access of the additional shares to foreign investors and so to increase the liquidity of the AG Group share on the international markets. For this reason, the principal shareholders, namely the Societe Generale de Belgique, Asphales, Anhyp, Asahi, Selstra, Immonar and the families represented on the Board of Directors, have agreed to limit the extent to which they globally exercise their pre-emptive rights to 70 percent, General Bank and S.G. Warburg & Co., Ltd. are joint lead managers of the emission.
 Furthermore, the Board Of Directors of AG Group has decided to issue a maximum of 121,000 shares and to reserve them for the employees of AG 1824 and the subsidiaries in Belgium in which that company has an interest of at least 50 percent. By doing so, the Board of Directors will be acting for the last time in line with a tradition that existed in Belgium before Fortis came into being.
 Taking into account the number of new shares created and the profit forecast for Fortis and AG Group, the Board of Directors of AG Group expects the earnings per share, of AG Group for 1993 to closely approximate to that of 1992. The Board of Directors of AG Group expects the acquisition of 49.9 percent interest in ASLK-CGER-Bank and ASLK-CGER-Insurance to have a gradually increasing positive effect on the growth in earnings per AG Group share in the next few years.
 Subject to the approval of the prospectus by the Belgian Banking and Financial Commission, subscription to the capital increase will be possible from November 23 to December 9, 1993, inclusive in the ratio of 2 new shares in return for the surrender of 15 no. 4 dividend coupons for the existing ordinary and/or AFV shares or shares issuing from the exercise of AG Group warrants. The issue price will be fixed on November 22, 1993 on the basis of the average of the latest stock exchange prices and will be published in the media on November 23, 1993. Until that time, no further comment can be made on this topic. The securities to be offered for sale by AG Group may not be offered or sold to U.S. persons.
 Contribution of N.V. AMEV
 N.V. AMEV is financing its contribution to Fortis by using the sum it will receive from AG Group at the end of 1993 in payment of the repurchase of the first tranche of AG 1990 (Nederland) B.V's preference shares. This purchase involves a sum of NLG 55.3 million or BEF 1 billion. In addition, N.V. AMEV will finance its contribution to a sum of NLG 335 million or 6.5 billion by selling a number of assets to Fortis companies.
 The executive board of N.V. AMEV expects the acquisition of a 49.9 percent interest in ASLK-CGER-Bank and ASLK-CGER-Insurance to have a gradually increasing positive effect on the growth in earnings per N.V. AMEV share in the next few years.
 Fortis is represented in the U.S. by Fortis, Inc., a company with 1992 revenues of $2.7 billion, net income of $134.8 million and shareholders' equity of over $800 million. It has approximately 6,000 employees. Fortis, Inc.'s parent companies are Holland-based N.V. AMEV and Belgium-based AG Group, each of which owns 50 percent of Fortis. N.V. AMEV's ADRs trade over-the-counter on the NASDAQ system.
 -0- 10/28/93
 /NOTE TO EDITORS: In connection with the increase in capital of AG Group, Fortis and its two parent companies will publish their results for the first three quarters of 1993 on November 23, 1993 instead of December 2, 1993.
 /CONTACT: Bud Guthrie of Fortis, Inc., 212-323-9304, or Robert P. Borchert of Edelman Worldwide, 212-704-8293/


LG-TS -- NY111 -- 8095 10/28/93 15:53 EDT
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Publication:PR Newswire
Date:Oct 28, 1993

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