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Allianz seeks 100% ownership of Euler Hermes

27th November 2017 - Author: Steve Evans

Insurance giant Allianz has made an offer to acquire the remaining shares of trade-credit insurer Euler Hermes, as it seeks to take control of the company.

allianz-flagsAllianz has already secured the purchase of an additional 11.34% of Euler Hermes share capital, taking its ownership to 74.34% of Euler Hermes share capital and voting rights, but now seeks to acquire the remaining shares through a tender offer.

The insurer has offered 122 euros cash per share, which represents a premium of 20.7% on the Euler Hermes share price as at 24th November 2017.

Allianz calls Euler Hermes the “Leading global trade credit insurer and a core component of Allianz global lines business.”

The insurer further explains, “Increasing ownership in Euler Hermes is therefore 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.”

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The insurer said that it does not intend to change the Euler Hermes Supervisory Board or operating model, beyond the ordinary course of business.

Allianz said that if it can lift its shareholding to 95% or more of Euler Hermes it will follow the process to squeeze out the other investors, under French law, in order to take full ownership of the firm.

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