M&A in the re-insurance industry?

[Alekbaylee]

Not sure if this is an exception or the beginning of a trend, but Paris Re & PartnerRe have announced their merger.

 

Here's the link in french, couldn't find anything in English...

 

http://fr.news.yahoo.com/4/20090929/tbs-partnerre-paris-re-fusion-7318940.html

[EdWatchesBoxing]

Here's google's translation:

 

 

Paris Re and PartnerRe Announce Merger

 

Tuesday, September 29, 08h30

Reuters

 

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Paris Re and PartnerRe announced Monday that their reconciliation would be based on a merger instead of an exchange offer in order to accelerate the acquisition of French reinsurer by its counterpart based in Bermuda. Read Article

Stock quote on Yahoo! Finance

Course prices BourseStock Company Code Last Price Change

ABN AMRO HOLDING 36.95 --

EURONEXT 92.50 --

PARTNERRE LTD 77.67 --

 

In a statement, Paris Re said that the consideration offered to shareholders would remain unchanged, a ratio of 0.30 share for a title PartnerRe Paris Re

 

This should allow the buyer to take a block of 77% of Paris Re, which will be added to the 6% it already owns. It should be finalized during the month of October 2009.

 

Paris Re has committed to convene a general meeting of its shareholders as soon as this block has been acquired by PartnerRe.

 

Holders of securities Paris Re will then decide "about a merger in which Paris Re is absorbed by a subsidiary 100% owned by PartnerRe", paving the way for the redemption of the shares of French.

 

The statement said PartnerRe should also request the exchange operator Euronext admission of its shares on Euronext Paris.

 

The message from Paris Re does not mention the exact amount of the transaction. It was estimated in July to two billion dollars (1.43 billion euros).

 

PartnerRe, created in 1993 after Hurricane Andrew, has already bought the reinsurer SAFR Paris in 1997 and Winterthur Re, a subsidiary of Winterthur Insurance in 1998.

 

Paris Re was founded in 2006 by a consortium of investors led by Trident III, a fund managed by Stone Point Capital. It also has among its shareholders Hellman & Friedman, Vestar Capital Partners and ABN Amro.

 

Nicolas Delame