Italian investment company Exor has agreed a $6.9 billion deal to buy Bermudian reinsurer PartnerRe.
Exor will acquire all of PartnerRe’s outstanding common shares for $140.5 each. The deal includes a special pre-closing dividend of $3 per share, for a total transaction value of approximately $6.9 billion.
The agreement includes a ‘go-shop’ period to allow the PartnerRe board to solicit and evaluate any competing offers up until 14 September. It also subject to shareholder approval.
Jean-Paul Montupet, chairman of PartnerRe, commented: “We are pleased to reach this agreement with Exor, which we believe is in the best interest of our shareholders.”
“Since Exor made its initial offer to acquire the company in April 2015, the PartnerRe board has been focused on maximising value for our shareholders while positioning PartnerRe for long-term success.”
“We have carefully and thoroughly evaluated each development over the past several months, and believe that this approach was critical to delivering a transaction that represents [an] improvement in the price and terms of Exor’s original proposal.”
John Elkann, chairman and CEO of Exor, welcomed the deal: “Today’s agreement is very positive for PartnerRe and Exor. Under our stable and committed ownership, PartnerRe will continue to develop as a leading independent global reinsurer.”
“Exor looks forward to working with the board of directors and the management of PartnerRe to ensure a successful path forward. I would like to thank our fellow shareholders for their continuing support over recent months.”
