11/27/2017, 9:49 AM (Source: TeleTrader)
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Chart for: ALLIANZ SE NA O.N.

Allianz plans to acquire rest of Euler Hermes

Allianz SE said on Monday that it plans to acquire the rest of French credit insurance company Euler Hermes shares in which it already owned over 60%. The company noted it struck a deal last week to purchase another 11.34% of Euler Hermes share capital for €122 per share in cash, which gives it a 74.34% stake in the French firm as well as voting rights.

The German insurer added it intends to launch a "simplified cash tender offer" for all Euler Hermes shares which it doesn't already possess and which are owned by minority shareholders. "The consideration for one Euler Hermes share will be 122 euros in cash. This constitutes a premium of 20.7% on Euler Hermes share closing price on 24 November 2017 and of 22.9%, 22.2% and 30.8% compared to three, six and twelve-month volume weighted average Euler Hermes share price," the company said in a statement. "Allianz intends to implement a squeeze-out procedure following the contemplated tender offer, in the event Allianz’s holding in Euler Hermes reaches 95%," the German firm pointed out.

Euler Hermes stock surged 20.68% at 9:38 am CET on the news, while Allianz shares rose 0.23% at 9:46 am CET.

Breaking the News / NP