The acquisition increases Munich Re’s direct and indirect holdings in ERGO’s share capital to over 95%
Munich Re has acquired further shares in ERGO Versicherungsgruppe AG (ERGO) from Bayerische Hypo- und Vereinsbank AG (HVB) via an investment company.
This acquisition has increased Munich Re’s direct and indirect holdings in ERGO’s share capital to more than 95%. On 12 May 2010, a squeeze-out resolution is likely to be adopted.
Nikolaus Bomhard, chairman of Board of Management of Munich Re, said: The squeeze-out that is now possible at ERGO will result in a significant simplification of shareholding structures, save costs, and further facilitate Group-wide cooperation within Munich Re.
ERGO is and remains a key business field in our Group. The planned squeeze-out is a logical step in our integrated insurance group strategy.
The sales cooperation between ERGO and HVB will be continued. ERGO’s minority shareholders will receive appropriate cash compensation for their shares which will be determined by Munich Re on the basis of a company valuation.