Germany-based Allianz Group intends to launch another cash tender offer for the remaining shares in Euler Hermes Group SA that it does not own, followed by a squeeze-out procedure and the eventual delisting of its French unit from the Euronext Paris stock exchange.
The German insurer recently increased its stake in Euler Hermes to 92.43% through a tender offer for Euler Hermes shares at €122 apiece, leaving a 6.12% stake on the market as of Feb. 13. Since then, Allianz had acquired an additional 1.44% of the French insurer's share capital on the market, resulting in a 93.86% stake.
In continuation with its initial tender offer, Allianz said it will file a further tender offer in the coming weeks for the remaining 4.69% of shares held by minority shareholders in Euler Hermes at an unchanged price of €122 per share, subject to Autorité des Marches Financiers approval.
Once the French stock market regulator gives its clearance, the tender offer, the squeeze-out of remaining minority shareholders and the delisting of Euler Hermes' shares are all expected to take place in the second quarter.
The transaction will have no impact on Allianz's planned €2 billion share buyback program for 2018, the German insurer added.