November 27, 2017
Allianz has announced that it plans to buy up the outstanding shares in trade credit insurer Euler Hermes and take control of the company.
The German insurer said it has already agreed to buy another 11.34 percent of Euler Hermes for EUR122 per share to take its stake to 74.34 percent.
The company said it intends to launch a simplified cash tender offer to acquire another 24.2 percent of Euler Hermes at the same price.
The offer marks a premium of 20.7 percent on the Euler Hermes share closing price on 24 November.
The carrier said it intends to implement a squeeze-out procedure to acquire the remaining stock in the event Allianz's holding in Euler Hermes reaches 95 percent.
Allianz said it expects to formally file the tender offer in the coming weeks, with any deal subject to regulatory approval.
Allianz said that increasing ownership in Euler Hermes was “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 advised that it remains supportive of the strategy of Euler Hermes board of management and does not intend to change, as a result of the transaction, Euler Hermes supervisory board composition or Euler Hermes operating model beyond ordinary course of business.
Allianz added that the offer will not have an impact on its previously announced EUR2bn share buyback program.