EXOR: $6.4 Billion Proposal To Buy PartnerRe

April 14, 2015

[Updated] EXOR, an Italian company controlled by the Agnelli family, today [April 14] submitted a written proposal to the Board of Directors of Bermuda-based PartnerRe Ltd. to acquire 100% of the common shares of the company for $130.00 per share in cash, valuing PartnerRe at $6.4 billion.

A statement from the company said, “EXOR’s all-cash proposal represents a 16% premium to the implied value per share of $112.53 for PartnerRe under the Amalgamation Agreement between PartnerRe and AXIS Capital Holdings Limited  based on the average of AXIS’s closing prices for the ten days ending on April 13, 2015.

“The proposed EXOR transaction, which is envisaged to be friendly, can be completed expeditiously. Compared to the all-share combination with AXIS, it provides PartnerRe shareholders with superior value and greater certainty since it is all cash, fully financed, and does not require a capital increase by EXOR nor a vote by its shareholders.

“EXOR has invested successfully in the insurance and reinsurance sectors for over two decades, including as a minority investor in PartnerRe when it was formed in 1993, and believes there is significant long-term potential for a global reinsurer such as PartnerRe.

“Its deep underwriting expertise, significant financial strength, scale and diversification would be enhanced by EXOR’s permanent capital base and ability to deploy additional resources to accelerate growth under the right conditions, further strengthening its position as a world leading reinsurer.

“We strongly admire the PartnerRe business and its people. Our proposal provides superior value for PartnerRe shareholders with the certainty of a cash offer,” said John Elkann, Chairman and CEO of EXOR.

“It also represents a great opportunity for the company’s management and employees to continue to develop PartnerRe’s outstanding potential as a leading global reinsurer with our committed and stable ownership.

“We have every confidence that the PartnerRe Board, employees and shareholders will support our proposal and create the conditions for us to bring this offer to fruition swiftly.”

Update 5.43pm: PartnerRe Ltd. confirmed it has “received an unsolicited proposal” from EXOR to acquire 100% of the common shares of the company for $130.00 per share in cash, valuing PartnerRe at $6.4 billion.

The company said, “As was previously announced on January 25, 2015, PartnerRe has entered into a definitive amalgamation agreement with AXIS Capital to combine and create one of the world’s leading specialty insurance and reinsurance companies.

“Consistent with its fiduciary duties, the PartnerRe Board of Directors will review the EXOR proposal to determine the course of action that it believes is in the best interests of PartnerRe and its shareholders.

“The Board will announce its position regarding the EXOR proposal following its review, which will be completed in due course.”

Update 10.17pm: AXIS acknowledged the EXOR proposal, with AXIS CEO Albert Benchimol saying, “AXIS Capital is fully committed to its combination with PartnerRe Ltd.

“Our transaction with PartnerRe brings together two independently strong companies to create one broadly diversified global specialty insurance and reinsurance company whose scale, capital and enhanced market presence will form a powerhouse within the industry.”

“The combined company will have a strong capital position, significant financial strength, a combined world-class management team and industry-leading talent.

“As such, it will deliver significant operating and capital synergies, as well as an expanded solution set and product offering for clients and partners. We are confident that the combined company is positioned to deliver superior and sustainable value to all shareholders.”

AXIS Capital said that it will have no further comment on the EXOR proposal at this time.

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Comments (6)

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  1. UpsetwithVerdict says:

    wow and interesting, I wonder whats up with this? things that make you go hmmmm….

  2. Real talk (original) says:

    Less job losses?

  3. Keepin' it Real!...4Real! says:

    BILLIONAIRES Monopoly Game…if you do not understand, then it’s probably better that you don’t.

    • SMH says:

      Isn’t it time for you to crawl back under your rock

  4. Keepin' it Real!...4Real! says:

    take all 7 letters in the word BERMUDA, scrabble them, then using every letter to create a new word. thanks.

    ps. to all that cant do it, i guess
    you’re dumbera than i thought.