After months of twists and turns, Exor wins the American battle. The Agnelli family holding company announced today that it has reached a definitive agreement to buy the US reinsurance company PartnerRe, which simultaneously terminated the merger agreement with Axis. The cost of the operation is equal to 6,9 billion dollars total: all common shares will be purchased at $137,5, plus an extraordinary dividend of $3, for a total of $140,5.
“The agreement signed today is very positive for PartnerRe and Exor – he commented John Elkann, president and CEO of the financial company that controls FCA -. Thanks to our stable shareholder commitment, PartnerRe will continue to develop as a leading independent and global reinsurance company. Exor will now work with PartnerRe's board and management to ensure the success of the next steps. I would like to thank our fellow shareholders for the continued support they have shown us over the past few months."
on your part, Capital Axis agreed to PartnerRe's request to close the merger deal and will receive $315 million in compensation. The US company confirms that the PartnerRe meeting of 7 August to evaluate its proposal has been cancelled.
However, the match is not officially closed definitively, because the agreement provides for a period of "go shop” during which the PartnerRe board will have the right to solicit and evaluate any offers competing with the Exor operation, starting negotiations on any proposals received before 14 September 2015.
The transaction with Exor requires the approval of the PartnerRe extraordinary shareholders' meeting, which will be convened shortly. The completion of the transaction is expected no later than the first quarter of 2016. After the diffusion of the news of the agreement, the Exor share on the Milan Stock Exchange travels just above parity, at 45,94 euros.
