Mubasher: Global German insurer Allianz on Monday said it was planning to acquire all outstanding shares in France-listed Euler Hermes Group through a simplified cash tender offer.
The acquisition involves shares currently not held by Allianz and owned by minority shareholders in the French insurance firm.
The purchase also involves 24.20% of Euler Hermes’ share capital at EUR 122 ($145.5) per share, the German insurer and financial services company said, indicating that it will likely submit the official tender within the coming few weeks.
"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 in a statement.
Following the cash offer, Allianz would raise its stake to 98.54%. Its acquisition will not involve the 1.46% treasury shares in Euler Hermes’ share capital.
Should Allianz’s stake in Euler Hermes reach 95%, the German company plans to carry out “a squeeze-out procedure” after the contemplated tender offer.
Allianz’s newest bid to acquire the 24.20% of its French counterpart remains subject to approval from regulatory authorities.
Last week, the German insurance firm acquired 11.34% in Euler Hermes for EUR 122 per share, raising its stake to 74.34%.
The offer will have no impact on Allianz’s EUR 2 billion-share buyback programme for 2018, the company concluded.
