Insurance giant Allianz has annoucned today that it’s buying 11.34% of Euler Hermes share capital, for a price of 122 euros per share in cash, as a result of which Allianz will own 74.34% of Euler Hermes share capital and voting rights.
Allianz also announced its intention to make a cash offer to acquire all outstanding Euler Hermes shares. The would also be 122 euros in cash – a premium of 20.7% on Euler Hermes share closing price on 24 November 2017.
Euler Hermes is the leading global trade credit insurer and a core component of Allianz’s global lines business. EH also offers international debt collection services and fraud insurance products. In 2016 EH announced a partnership with Fluent, to develop a single invoice transaction credit insurance product, so that an international trade could be covered instantly, against multiple risks, using the latest blockchain technology.
Increasing ownership in Euler Hermes is a logical step for Allianz. It makes sense to place capital into a strategic businesses, and to strengthen its position in core markets.