Allianz Group has increased its shareholding in credit insurer Euler Hermes to 92.43% after acquiring an additional 29.43% of Euler Hermes’ share capital in a total investment of about €1.5 billion.
The insurance giant announced last year that it was looking to gain 100% ownership of Euler Hermes, and filed a tender offer for outstanding shares in January 2018, although it was unsuccessful in taking full-ownership.
Allianz then increased its shareholding at the end of the tender offer that closed on February 13th, 2018.
At the tender offer close, the remaining float on the market was 2,610,884 shares, or 6.12% of Euler Hermes share capital.
Allianz confirmed that the transaction will have no impact on the planned share buy-back programme of Allianz SE for 2018 for up to €2 billion.
The Allianz investment in Euler Hermes shares lifts the insurer’s stake in the property and casualty sector. The transaction is expected to be immediately EPS accretive.