2024-02-28 16:26:14
Belgian insurer Ageas confirmed on Wednesday that it was considering making an offer to purchase British insurance company Direct Line. The potential offer would offer 100 pence per Direct Line share and one newly issued Ageas share for 25.24047 shares in the British insurer.
The proposed offer has an intrinsic value of 233 pence per share, representing a premium of 42.8% to Direct Line’s closing share price of 163.35 pence on February 27. Intrinsic value per share reveals how much of the company’s profits go to shareholders. Direct Line is thus valued at 3.095 billion pounds sterling (3.618 billion euros).
Ageas says it is “convinced that a combination of Ageas and Direct Line’s activities in the United Kingdom will be beneficial for both Ageas and Direct Line’s shareholders.” The insurer says there are “significant operational and capital synergies” between the two companies.
Direct Line confirmed on Wednesday followingnoon that it had received a “highly conditional and non-binding indicative proposal” from Ageas on January 19. The British insurer deemed it “uncertain, unattractive and significantly undervaluing the company”.
Trading on Ageas shares resumed on Wednesday followingnoon. Shortly following 3:00 p.m., it was trading at 38.41 euros, down 2.31%, on the Brussels Stock Exchange.
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