The revised and increased offer made by global specialty insurance and reinsurance firm AXIS Capital Holdings Limited to acquire Lloyd’s of London focused diversified specialty re/insurer Novae Group plc has been accepted by shareholders, the company reported today.
Novae Group held a General Meeting earlier today in London and approximately 99.97 percent of shareholders voted in favour of the acquisition by AXIS at the revised and increased price.
The original offer had been rejected and deemed insufficient by certain Novae shareholders, we understand, hence AXIS returned with a sweetened deal increased by 2% to entice the shareholders to come on side and support the acquisition.
That seems to have been successful, as evidenced by the vote today and that paves the way for the creation of a combined global specialty reinsurance entity with gross written premiums in excess of $6 billion.
Albert Benchimol, President and CEO of AXIS, stated; “The acquisition of Novae accelerates the growth strategy of our international insurance business, creating a $2 billion insurer in the London specialty market, while significantly scaling up our capabilities and enabling AXIS to even better serve our clients and brokers. We are excited by the possibilities this presents and look forward to welcoming the Novae team as we work together to achieve our shared ambitions.”
Matthew Fosh, CEO of Novae, added; “We are pleased that Novae shareholders supported the transaction. We strongly believe that the combined company will be superbly positioned to compete in the international specialty insurance marketplace.”
There seems nothing else to stand in the way of AXIS’ acquisition of Novae Group now, barring a rival bid being made that valued Novae even higher.
The M&A transaction remains subject to regulatory approval and customary closing conditions, with the participants hoping to see the deal sealed during the fourth quarter of this year