Allianz looks to buy up shares in global trade credit insurer Euler Hermes.
Allianz is looking to purchase all remaining shares in global trade credit insurer Euler Hermes. It is already the majority shareholder.
Allianz purchased 11.34% of Euler Hermes’ share capital at €122 per share through agreements concluded on 24 November. Following this purchase, it owned 74.34% of shares in the trade credit insurer.
It has now made a simplified cash tender offer of the same amount per Euler Hermes share. It is seeking to buy up 24.2% of share capital. This price would offer a liquidity to minority shareholders, and exceeds the price objectives set by analysts.
A formal opinion on the offer could be given by late December 2017, subject to an independent expert’s report and a supervisory board recommendation. The French Autorité des marchés financiers (AMF) will also have to approve the offer.
If Allianz is successful, the composition of Euler Hermes’ supervisory board, operating model and strategy would not be impacted “beyond ordinary course of business,” according to both Euler Hermes and Allianz.
Should a squeeze-out procedure not be implemented, Allianz may consider a merger of Euler Hermes with Allianz or a company in the Allianz Group.
Allianz expects the transaction to be EPS accretive by around 1% and to alter Allianz’s solvency position by 4% points.