Amlin has signed €350 million agreement to acquire Fortis, a provider of corporate property and casualty insurance, from the State of the Netherlands. The acquisition is subject to shareholders’ approval.
The deal strengthens Amlin’s position in commercial property, marine and liability insurance in the Netherlands and Belgium. Besides this, the takeover expands the company’s geographical presence and distribution, customer base, and business lines.
The transaction is likely to enhance the company’s return on equity (ROE) and earnings.
To fund the consideration, Amlin will announce a placing of 23,502,567 shares, denoting about 5% of Amlin’s issued ordinary share capital, to institutional investors. The remaining amount will be financed from the company’s existing cash resources.