Allianz has filed a tender offer for outstanding shares in trade credit insurer Euler Hermes in a EUR122-per-share bid with French markets regulator AMF.
On approval, Allianz’s simplified cash tender offer is to open in early 2018, offering shareholders a 20.7% premium to the pre-announcement closing price on November 24, 2017 and a 30.8% premium to the twelve month volume weighted average Euler Hermes share price on the same date.
The offer is for the remaining of 10,320,680 shares, or 24.2% stake in Euler Hermes and would make Allianz the sole shareholder of the carrier with theoretical voting rights of the company.
Allianz said it intends to follow-up with squeeze-out procedure if minority shareholders represent less than 5% of share capital and voting rights following the tender offer.
The offer is expected to close in the first quarter of 2018.
As a leading global trade credit insurer, Euler Hermes is core component of Allianz global lines business.
Allianz said the offer marks a step forward in Allianz’s strategy to invest in profitable businesses and strengthen its position in core home markets and in property and casualty.