NN Group reaffirms intention to acquire Delta Lloyd

Dutch insurance group NN has confirmed its continued intention to acquire its Amsterdam-based competitor Delta Lloyd, according to a release published yesterday.

The announcement follows a surprise proposal published by NN on 5 October, with the group offering €5.30 per ordinary share, amounting to a total sum of €2.4bn. At the time, Delta Lloyd rejected the offer, stating that it undervalued Delta Lloyd’s book value and failed to factor in the presumed benefits of the groups consolidation strategy in Belgium and the Netherlands. However, Delta Lloyd did not reject the prospect of an acquisition in principle.

The publication of NN’s declaration of continued interest in the takeover is in line with Dutch M&A laws (Besluit Openbare Biedingen), which require the offering party to publish an update of its intended acquisition within four weeks of the initial offer. In its update, NN onfirmed that in line with legal requirements, it will submit its offer letter to the local regulator by 28 December.

In a statement responding to the release, Delta Lloyd confirmed: “Following its rejection of NN Group’s proposal on 7 October 2016, Delta Lloyd has shared its views on a possible transaction directly with NN Group. Delta Lloyd has also provided to NN Group its estimates of the substantial cost and capital benefits that a combination could deliver.”

ABOUT THE AUTHOR
Mona Dohle
Mona Dohle speaks German and Dutch, she is DACH & Benelux Correspondent for InvestmentEurope. Prior to that, she worked as a journalist in Egypt and Palestine. She started her career as a journalist working for a local German newspaper. Mona graduated with an MSc in Development Studies from SOAS and has completed the CISI Certificate in International Wealth and Investment Management.

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