Ageas believes that the combination of the businesses will be beneficial for shareholders

Belgium-based insurer Ageas has revealed that it is considering making an offer to acquire Direct Line Insurance Group (DLG).

In a statement, Ageas SA/NV said it was in the preliminary stages of considering a possible offer of around £3.09bn.

This would have an implied value of 233 pence per Direct Line share, representing a premium of 42.8% to Direct Line’s last closing price of 163.35 pence.

Ageas said it “firmly believes that the combination of Ageas’ and Direct Line’s UK businesses will be beneficial” for shareholders.

“This will provide a meaningful opportunity to unlock shareholder value through the delivery of significant operational and capital synergies,” the insurer added.

DLG changes

This announcement came after RSA agreed a deal to acquire DLG’s commercial lines operations – including the NIG and FarmWeb brands – in September last year. 

The purchase was agreed for an initial fee of £520m, with potential for up to a further £30m contingent on earnout provisions related to financial performance of the acquired business lines. 

DLG also announced former Aviva UKGI top boss Adam Winslow as its new chief executive in August 2023 and said he would take up the role in Q1 2024.

Ageas believes its proposed transaction ”represents compelling strategic and financial value for both Ageas and Direct Line shareholders”.

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