Nordic Business Report-April 12, 2006-Iceland's TM offers NOK887m for Norway's Nemi
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Icelandic insurance company Tryggingamidstodin (TM) has launched a cash bid of NOK62.50 per share for all shares in Norwegian insurance firm Nemi, TM said in a statement on Wednesday (12 April).
The bid values the company at around NOK886.6m, and represents a 25% premium on the average market price for the last 20 trading days before the interest by TM in Nemi became publicly known, or a 33% premium on the average market price for the last six months.
Following the offer Nemi said in a statement that it will give a board opinion on the proposal within one week before the offer expiry. Before then the company recommends that shareholders do not make a decision on whether to accept or not.
TM holds shares and pre-acceptances of around 68%. The offer period will run from 12 April to 28 April.
TM said it is broadening its horizon outside of Iceland and that Nemi provides an excellent opportunity to expand into Scandinavia. The company said Nemi has a solid track record, strong management and an attractive business model which fits well with TM's strategy.
The offer is conditioned on that TM receives acceptance of shareholders who represent more than 90% of the shares, satisfactory confirmatory legal and accounting due diligence results, approval of regulatory institutions in Norway and that TM can waive any or all conditions.
Carnegie and Straumur-Burdaras are joint advisors.
TM is an Icelandic company with headquarters in Reykjavik. It is one of three major insurance players in Iceland, with a market share in excess of 50% in the maritime insurance sector.
One Norwegian krone (NOK) is worth approximately 0.08 British pounds (GBP).
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