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Allianz plans Euler Hermes squeeze-out

February 23, 2018

Allianz has unveiled plans to initiate a squeeze-out and delisting of Euler Hermes’ remaining five percent of market float share capital and voting rights, in a move that will see the insurer complete its plans for 100 percent ownership of the trade credit insurer.

Allianz intends to file a tender offer in coming weeks for remaining Euler Hermes shares held by minority shareholders, at an offer price of EU122 per share.

The (re)insurer said the tender offer comes as part of its strategy to strengthen its position in core home markets particularly P&C insurance.

The offer remains subject to French Autorité des marchés financiers (AMF) approval, and is to be immediately followed by a squeeze-out and the delisting of Euler Hermes shares expected in the second quarter of 2018.

In 2017, Allianz revealed that it was looking to gain 100 percent ownership of Euler Hermes and filed a tender offer last month which was unsuccessful.

Allianz increased its shareholding of the share capital and voting rights of Euler Hermes to 92.43 percent at the end of the tender offer that closed on 13 February.

At the closing of that tender offer, the remaining float on the market was 2,610,884 shares, representing 6.12 percent of Euler Hermes share capital and voting rights, excluding the 619,189 treasury shares held by Euler Hermes.

Allianz has since acquired 612,753 additional Euler Hermes shares at EUR122 per share, representing 1.44 percent of Euler Hermes share capital and voting rights, leaving a remaining market float of 4.69 percent.

With the latest acquisition, Allianz holds 40,024,315 shares in Euler Hermes, or 93.86 percent of share capital and voting rights.      

The tender offer will have no impact on the announced share buy-back program of Allianz SE for 2018 in the amount of up to EUR2bn.

Euler Hermes Supervisory Board is expected to appoint an independent expert, which will prepare a further report on the fairness of the proposed financial terms.