(Reuters) -Vienna Insurance Group (VIG) said late on Thursday that it will acquire all shares of German insurer Nuernberger Beteiligungs AG for 1.38 billion euros ($1.61 billion) in cash.
VIG will offer Nuernberger shareholders 120 euros per share, the insurer said in a statement, implying a premium of about 15% to the German firm’s last close of 104.5 euros, according to Reuters calculations.
The deal followed months after Nuernberger came under activist pressure from investor 7Square to entertain rival offers, apart from VIG’s, arguing that a potential bid from the firm would undervalue the business.
In a letter addressed in August, 7Square noted that Nuernberger could be worth as much as 1.6 billion euros, after VIG said it was in exclusive due diligence for a potential takeover of Nuernberger, without specifying a possible price.
Shares of Nuernberger have nearly doubled since VIG said it was considering an acquisition.
Outside regular business hours on Thursday, 7Square did not immediately respond to Reuters’ request for a comment on VIG’s offer for Nuernberger.
Nuernberger’s life insurance, property and casualty insurance divisions have underperformed for years.
“With our multi-brand strategy, we offer ideal conditions for securing the location and maintaining the identity of the strong Nuernberger brand,” said Hartwig Löger, chairman of the VIG managing board.
Major shareholders of Nuernberger holding 64.4% control, including Munich Re and Swiss Re, have agreed to put their shares for sale, while members of its management board confirmed they will tender all shares they hold, VIG said on Thursday.
($1 = 0.8552 euros)
(Reporting by Gursimran Kaur in Bengaluru; Editing by Shreya Biswas and Sherry Jacob-Phillips)
