Reykjavik (IFN) Icelandic insurance company Tryggingamidstodin (TM) has launced a NOK62.50 per share in cash bid for all the shares in Norwegian insurance firm Nemi, TM said in a statement on Wednesday.
The bid values around NOK886.6 million, 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 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 offer within one week before the offer expiry.
Before then, the company recommends that shareholders don't make a decision on whether to accept or not.
TM holds shares and pre-acceptances of around 68%. The offer period will run from April 12 to April 28.
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 attractive business model which fits well with TM strategy.
The offer is conditioned on that TM get 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.
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