17th Mar 2024 10:50
(Alliance News) - Direct Line Insurance Group PLC suitor Ageas SA has looked to win support of its own largest shareholder, China's Fosun, in its bid to acquire the FTSE 250-listed insurer, the Sunday Times reported.
Hans De Cuyper, chief executive of Brussels, Belgium-based Ageas, is flying to China over the weekend to meet Fosun representatives.
Fosun owns 10% of Ageas.
https://www.thetimes.co.uk/article/direct-line-suitor-flies-to-china-in-scramble-for-funds-to-lift-bid-5r87662mp
Sky News on Thursday reported Ageas is facing opposition from one of its own leading shareholders for the Direct Line bid. Sky reported that a top 10 investor in Ageas is canvassing the views of fellow shareholders in an attempt to halt its efforts to buy Direct Line.
Ageas on Wednesday described its fresh bid approach for Direct Line as "compelling".
De Cuyper said the improved possible offer "delivers substantial cash proceeds to Direct Line shareholders, whilst ensuring they benefit from the material value creation that we believe the combination of the UK businesses of Ageas and Direct Line will deliver".
Direct Line said the latest proposal, received March 9, comprised 120 pence in cash and one new Ageas share for every 28.4 Direct Line share.
At the closing share price on March 8, the day before the proposal was received, this implied a value of 237p per Direct Line share. The offer would value all of Direct Line around GBP3.07 billion.
Ageas said the new offer valued each Direct Line share at 239p, as per closing share prices on Tuesday.
Direct Line announces annual results on Thursday.
By Eric Cunha, Alliance News news editor
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