Allianz attempts to 'squeeze-out and delist' Euler Hermes

German insurer Allianz is launching a further tender offer for the remaining 5 percent of Euler Hermes shares held by minority shareholders that would result in a squeeze-out procedure and delisting of the trade credit insurer's shares from the Euronext Paris stock exchange.

The consideration for one Euler Hermes share will remain unchanged from the prior tender offer of €122 in cash, according to a Feb. 23 press release. Subject to the French Autorité des marchés financiers (AMF) clearance, the tender offer, squeeze out and delisting are expected to be effected in the second quarter of 2018.

The move follows the recent purchase of Euler Hermes shares by Allianz that it did not already own. Allianz’s initial tender offer for Euler Hermes saw its holding rise to 92.43 percent of the share capital and voting rights of Euler Hermes. It was open from January 15 to February 13, 2018.

At the closing of that tender offer, the remaining float on the market represented 6.12 percent of Euler Hermes share capital and voting rights.

Since then, Allianz Group has acquired additional Euler Hermes shares on the market at a price of €122 per share, representing 1.44 percent of Euler Hermes share capital and voting rights.

As a result, Allianz Group currently holds shares representing 93.86 percent of the share capital and voting rights of Euler Hermes. The remaining float on the market is therefore representing 4.69 percent of Euler Hermes share capital and voting rights.

Allianz intends to file a further tender offer for remaining Euler Hermes shares held by minority shareholders, offering €122 per share.

It added that this offer advances Allianz Group’s strategy to invest in profitable businesses and strengthen its position in core home markets and in property and casualty insurance in particular. Euler Hermes is the leading global trade credit insurer and a key component of Allianz global lines business.

Allianz said that it expects to formally file the tender offer in the coming weeks. The tender offer and the draft offer document will remain subject to AMF clearance.

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