August 29, 2017
Axis Capital’s proposed £477.6mn takeover of Lloyd’s carrier Novae has gained shareholder approval, with nearly 94 percent of voting investors giving the green light for the deal.
At court meeting, 249 shareholders - collectively representing 71.53 percent of Novae's issued ordinary share capital - voted on the takeover, with 233 shareholders approving the deal.
At a separate general meeting, 99.97 percent of Novae shareholders voted in favour of the acquisition by Axis, which will be executed as a scheme of arrangement.
The approval comes after Axis raised its initial takeover bid from 700p a share to 715p a share on 24 August, in a bid “to bring certainty to the transaction” after it was reported that many shareholders thought the original offer undervalued the company.
In a statement Axis president and CEO Albert Benchimol said: "The acquisition of Novae accelerates the growth strategy of our international insurance business, creating a $2 billion insurer in the London specialty market, while significantly scaling up our capabilities and enabling AXIS to even better serve our clients and brokers."
Meanwhile, Novae CEO Matthew Fosh said: “We are pleased that Novae shareholders supported the transaction. We strongly believe that the combined company will be superbly positioned to compete in the international specialty insurance marketplace.”
The deal is expected to close in the fourth quarter, subject to regulatory approval.