On February 11, Allianz (ALVG.DE) confirmed that it would pay nearly 207 million euros ($235 million) to purchase Greek insurer European Reliance in a move that is expected to create the nation’s fifth-biggest insurer based on the gross written premiums.
The 7.80 euros per share bid is seen to represent a 15.7% premium for the closing price on February 11, according to Allianz. The company added that it was getting ready to enter share purchase agreements that cover 72% of European Reliance’s shares and launch a takeover bid for the remaining stake.
Sergio Balbinot, an Allianz management board member, stated:
“This is an exciting opportunity for Allianz to elevate its position in the attractive Greek insurance market with an ideal entity such as European Reliance.”
As part of that transaction, European Reliance will be integrated with Allianz Hellas, the insurer’s Greek unit. The merged entity will then be led by the European Reliance CEO Christos Georgakopoulos, as confirmed in an official statement by Allianz.