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Allianz seeks 100% ownership of credit insurance firm Euler Hermes

IBR Staff Writer Published 28 November 2017

German insurance firm Allianz has made an offer to buy the remaining shares of credit insurer Euler Hermes, as it seeks to take control of the company.

Allianz has already secured the purchase of an additional 11.34% of Euler Hermes share capital, taking its ownership to 74.34% of share capital and voting rights in the trade credit insurer.

The German firm now seeks to acquire the remaining shares through a tender offer.

Allianz has offered 122 euros cash per share, which represents a premium of 20.7% on the Euler Hermes share price as at 24 November 2017.

Allianz said Paris-headquartered Euler Hermes is a core component of its worldwide lines business.

Euler Hermes, which is present in more than 50 countries, employs over 5,900 people. The company's consolidated turnover was €2.6bn in 2016.

The company insured global business transactions for €883bn in exposure at the end of 2016.

Allianz said that it does not intend to change the Euler Hermes Supervisory Board or operating model, beyond the ordinary course of business.

The German firm plans to implement a squeeze-out procedure after the contemplated tender offer, if its holding in Euler Hermes reaches 95%.

The increase of ownership in Euler Hermes will allow Allianz to deploy capital in strategic businesses and strengthen positions in core home markets, especially in in property and casualty sector.

Euler Hermes said that its supervisory board would meet to deliver a formal opinion regarding Allianz’s offer during the last days of December.

Allianz manages more than 650 billion euros on behalf of its insurance customers.


Image: Allianz Board Member Axel Theis and Euler Hermes CEO Wilfried Verstraete. Photo: Courtesy of Allianz.