’The board is confident in DLG’s standalone prospects,’ says insurer

Direct Line Group (DLG) has revealed that Ageas made another attempt at acquiring the insurer.

In a statement, DLG said it received a second “highly conditional, non-binding indicative proposal” from the Belgium-based insurer on 9 March 2024.

Ageas first approached DLG on 19 January 2024, proposing a deal that implied a value of 233 pence per DLG share.

The latest proposal implied a value of 237 pence per share.

However, like with the first offer, DLG said it was “uncertain, unattractive and that it significantly undervalues DLG and its future prospects, while also being highly opportunistic in nature”.

In turn, the board unanimously rejected the latest proposal.

’Standalone prospects’

In its own statement after the first proposal was sent to DLG, 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 has advised shareholders to take no action over any offer that may be made in the future.

“The board is confident in DLG’s standalone prospects,” it added.