Finish insurer Sampo has revealed it intends to acquire all of the outstanding shares in P&C insurer Topdanmark not already owned for 33 billion Danish Krone (€4.42 billion).
Sampo already owns around 48.5% of Topdanmark, with this new consideration representing a premium of 27% to the closing share price of the Danish firm on Nasdaq Copenhagen on 14 June 2024.
Following the offer’s completion, Sampo anticipates integrating Topdanmark into its If P&C Insurance segment to consolidate its leadership position in the Nordics.
The Board of Directors of Sampo intends to appoint Peter Hermann, Group CEO of Topdanmark, as Deputy CEO of If P&C, and Sampo Group Executive Committee member, subject to completion.
Sampo explained that Hermann has worked as Group CEO of Topdanmark since 2018 and as CEO of Topdanmark Livsforsikring from 2016 to 2018.
Hermann will reportedly remain as Group CEO of Topdanmark until the integration into If P&C is completed. Meanwhile, Morten Thorsrud will continue as CEO of If P&C Insurance Holding.
The Finish insurer additionally noted that it will raise its target for deployable capital generation over 2024-2026 to over €4.5 billion, on successful completion of the offer, reflecting the acquisition of Topdanmark and the capital optimisation actions completed during the first half of 2024.
In parallel to the offer, the Board of Directors of Sampo intends to immediately deploy €800 million to offset share count dilution from the transaction, through the launch of a share buy-back programme and the potential squeeze-out of Topdanmark minority shares.
Torbjörn Magnusson, Group CEO, Sampo, commented, “Our and Topdanmark’s strategies have further aligned in recent years as pure P&C insurers. The unanimously recommended Offer we are announcing today is the next logical step on this journey.
“By combining the businesses in a fully integrated Nordic operating platform, we can unlock growth and attractive synergies that will strengthen our position as a leading Danish P&C insurer. I am pleased to be able to present this offer to all Topdanmark’s other shareholders today and invite them to join us on this journey.”
Jens Aaløse, Deputy Chair of the Board of Directors of Topdanmark, added, “We find that the Offer from Sampo represents attractive financial value for the shareholders of Topdanmark and an appealing opportunity for Topdanmark shareholders to take part in the commercial, strategic and financial value creation in the well-diversified Sampo Group with strong growth perspectives.
“We are furthermore pleased that Sampo acknowledges Topdanmark’s strong position and the critical importance of our competent and skilled employees as a core component in realising business and market potential through increased efficiencies and enhanced growth prospects.
“The complementary businesses of Topdanmark and Sampo’s operations in Denmark will form a leading P&C insurer in the Danish market, where Topdanmark’s employees will contribute with strong values and culture.”
