NN Group launches all-cash offer for Delta LloydStaff Writer | October 5, 2016
NN Group launched an all-cash unsolicited takeover offer for Delta Lloyd NV, catapulting shares in the Amsterdam-based life insurer higher.
Acquisition A roughly 29% premium
"We believe there is a clear and compelling logic to bring consolidation to the Dutch insurance market through a combination of the businesses of NN Group and Delta Lloyd in a way that benefits both companies and their stakeholders," NN's CEO Lard Friese said in a statement.
The deal will be financed through existing resources and external debt, including the suspension of the outstanding part of a £500m share buyback programme.
NN's buy-out followed a lack of a response from Delta Lloyd management to an invitation to discuss a tie-up.
A combination of the two companies would result in increased scale and efficiency, driving significant expected earnings per share, free cash flow and dividend per share accretion, together with a "robust" balance sheet and solid solvency position, NN said. ■