Bermuda-based PartnerRe has reaffirmed its commitment to the planned merger with Axis Capital following the rejection of Exor’s bid.
PartnerRe’s board of directors rejected the bid made by the investment company, which valued PartnerRe shares at $130 each, and said that the proposal was Exor’s “best and only offer” and didn’t adequately value PartnerRe.
The board also recommitted to the planned meter with Axis Capital following the approval of enhanced merger terms.
Axis enhanced its offer with the proposal of a one-time special dividend to PartnerRe shareholders of $11.50 per common share prior to the closing of the amalgamation agreement.
Jean-Paul Montupet, PartnerRe chairman, said: “On behalf of the entire PartnerRe board, I am very pleased with the new terms agreed with Axis Capital as they appropriately recognise for our shareholders the significant value of our company.
“We continue to be very excited by the prospects of our amalgamation with Axis Capital, which we firmly believe will create value well in excess of the proposal made by Exor, and will give shareholders the opportunity to be a part of a world-class specialty insurance and reinsurance franchise and to share in the value such a combination will generate well into the future.”
Albert Benchimol, president and chief executive officer of Axis, said: “Axis Capital and PartnerRe have already made significant progress toward realising our shared vision of a broadly diversified global specialty insurance and reinsurance company with the scale, capital and market presence to compete at the highest levels of our industry.
“Throughout this process, we have only grown more confident about the transformational opportunity provided by this merger of equals, and we believe the combination of Axis Capital and PartnerRe will provide our respective shareholders, clients and brokers with compelling value both now and in the years ahead.”
Axis, PartnerRe, Exor, Europe, Bermuda, Mergers & Acquisitions