Hastings Group has been approached by Finnish insurer Sampo Oyj and South Africa’s Rand Merchant Investment Holdings Limited over a potential acquisition of the UK motor insurer.
RMI currently holds a 30% stake in the company.
Hastings has established an independent committee comprising the full Board of Hastings excluding Herman Bosman, the RMI representative to consider this approach and possible cash offer.
Hastings notes there can be no certainty that any firm offer will be made.
Sampo says it continuously considers various strategic options to accelerate its growth and diversify its earnings profile.
It’s understood that Sampo has a strategic ambition to further expand into non-life insurance.
As part of this strategy, Sampo has been considering a geographic expansion beyond its current footprint.
Sampo believes that a potential acquisition of Hastings may represent an attractive opportunity in the non-life insurance market to accelerate this strategy.
Hastings is a British non-life insurance company with a focus in motor insurance. The company is listed on the London Stock Exchange and its market capitalisation is approximately £1.1 billion.