FRANKFURT: German insurer Allianz said on Sunday it would offer 5.7bil euros to buy out minority shareholders in its Italian subsidiary, Riunione Adriatica di Sicurta SpA (RAS).
The voluntary cash tender offer represented a 14% premium on RAS's average share price over the past six months, and would be funded by a mixture of equity, debt and internal funds, Allianz said.
Allianz, Germany's biggest insurer, has controlled RAS since the mid1980s and currently owns 55.4% of the company, which holds second place in the Italian insurance market.
Allianz said it hoped the merger would allow it to reorganise its Italian activities and other operations in Austria, Switzerland and Spain.
“If you want to play in the premier league of international financial services providers, you need a strong base in your home market. Our home market is Europe,” Allianz CEO Michael Diekmann said in a statement.
RAS, founded in 1838, said in a statement that it would retain its historical brand and did not expect any job cuts in Italy after the merger. – Reuters
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