International insurer Allianz SE is to acquire 72% of Greek insurer European Reliance General Insurance Company, as it looks to grow its franchise.
Allianz will pay €7.80 per share, approximately €207m to acquire all the outstanding shares via a Share Purchase Agreement (SPA) and combined Voluntary Tender Offer (VTO).
Following the approval by the Bank of Greece, the Hellenic Competition Commission and the Hellenic Capital Market Commission, Allianz intends to publish the approved Information Circular and proceed with the VTO for the shares in European Reliance at the same price. The shareholders can then tender their shares within the VTO acceptance period.
Allianz said the acquisition represents its commitment to the Greek market. As a subsidiary of a global leader, Allianz said the combined entity would benefit from Allianz’s proven knowledge and financial strength.
The company also said European Reliance, once combined with Allianz, would become the first in property & casualty insurance, the fifth largest insurance company in Greece based on GWP and the fifth largest life/health insurer, empowering the company to pursue further growth in the Greek market and expand through new product offerings, distribution channels and customer pools.
Sergio Balbinot, member of the board of management of Allianz SE, said, “This is an exciting opportunity for Allianz to elevate its position in the attractive Greek insurance market with an ideal entity such as European Reliance.
“I look forward to welcoming European Reliance’s employees to the Allianz Group after all the regulatory clearances are granted. Together, we will have deep sector knowledge and be well-placed for success.”
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