Allianz agrees to buy remaining 33.5% stake in Irish subsidiary
Allianz has agreed to buy the remaining 33.5% interest in Irish subsidiary not already owned by Allianz Group.
Allianz currently owns 66.5% stake in Allianz Irish Life Holdings (AILH).
The total consideration for AILH minority interests is about €160m or €20.68 in cash per share.
Canada Life is the largest minority shareholder in AILH with a 30.4% interest, with other shareholders holding 3.1%.
According to Allianz, Allianz Ireland in terms of premiums is the second-largest property and casualty insurance company in Ireland.
A statement from Allianz read: “The acquisition is being implemented by means of a scheme of arrangement under Chapter 1 of Part 9 of the Companies Act 2014 of Ireland and is subject to AILH shareholder approval and sanctioning by the Irish High Court.”
The transaction is backed by the Toronto based insurance and wealth management company, Canada Life. It is subject to approval from shareholders of AILH, other than Allianz Group and also sanction from the Irish High Court.
Allianz Ireland read: “The Independent Committee of AILH, which has been so advised by Goodbody, considers the terms of the Acquisition to be fair and reasonable.
“In providing advice on the Acquisition to the Independent Committee of AILH, Goodbody has taken into account the commercial assessments of the AILH Directors. Accordingly, the Independent Committee of AILH unanimously recommends that AILH Shareholders vote in favour of the Scheme at the Court Meeting and in favour of the Resolutions at the EGM.”
Elsewhere, Allianz had reportedly given an informal takeover offer this week to QBE Insurance. However, the Australian insurer denied receiving any offer though from the German firm or any other interested buyer.
Image: Allianz Treptowers in Berlin, Germany. Photo: courtesy of Allianz.