Allianz intends to buy remaining Euler Hermes shares
German insurer Allianz has entered into agreements to purchase all outstanding shares of trade credit insurer Euler Hermes that it does not already own.
Allianz currently owns 63 percent of Euler Hermes share capital, and intends to acquire a further 11.34 percent of shares, increasing its ownership to 74.34 percent. It will purchase each share for a price of €122 in cash.
This constitutes a premium of 20.7 percent on Euler Hermes share closing price on 24 November 2017 and of 22.9 percent, 22.2 percent and 30.8 percent compared to three, six and twelve month volume weighted average Euler Hermes share price.
“Euler Hermes is the leading global trade credit insurer and a core component of Allianz global lines business. Underwriting excellence proven through the cycle, risk analysis and integrated global structure together with a strong and experienced management team provides the basis for Euler Hermes’ long-term growth prospects in trade credit insurance, bonding and selected other specialties,” Allianz said in a press release.
“Increasing ownership in Euler Hermes is therefore a logical step for Allianz to deploy capital in strategic businesses delivering solid operating performance, and to strengthen positions in core home markets and in property and casualty in particular.”
Allianz said that it does not intend to change the strategy of Euler Hermes board of management.
Furthermore, Allianz intends to implement a squeeze-out procedure following the contemplated tender offer in the event Allianz’s holding in Euler Hermes reaches 95 percent.
The transaction will not impact the previously announced share buy-back programme of Allianz SE for 2018 in the amount of €2 billion.
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