German insurance provider Allianz has confirmed its intentions to acquire the outstanding shares in both French insurer AGF and Germany's leading life insurer, Allianz Leben.
Allianz is poised to purchase the remaining 42.4% of shares in the French insurance firm. The group will offer a consideration of E87.5 in cash for each AGF share and an additional 0.25 Allianz share. As a result, Allianz will achieve full ownership of AGF.
In addition to the acquisition of AGF, Allianz has agreed to purchase the remaining 9% of shares in Allianz Leben, to achieve a 100% owenership of ADAG, the German insurance holding company of Allianz Leben.
ADAG will offer E750 in cash per Allianz Leben share, which constitutes to a premium of 19.9% over the six-month volume weighted average share price.
With the transformation of Allianz into a European company we have made it clear that Europe is our home market, said Michael Diekmann, CEO of Allianz. The buyout of AGF’s and Allianz Leben’s free float is therefore the logical next step following the integration of RAS into Allianz. This will help us create an even stronger platform to serve our European clients and further enhance our operating profitability.
The total purchase price for the two acquisitions will come to E7.5 billion, to be funded internally by Allianz Group.
Allianz expects to formally file the tender offer for AGF by the end of February 2007.