NN Group, the largest Dutch insurer by market capitalization, has launched an unsolicited offer to buy smaller rival Delta Lloyd for €2.4bn in cash.
Delta Lloyd has confirmed in a statement that it received a letter, dated 2 October, which outlined a conditional, unsolicited proposal to combine the businesses through a public offer by NN Group for all of the issued ordinary shares in the capital of Delta Lloyd at a price of €5.30 per ordinary share, a 29% premium to the latest closing price.
Delta Lloyd notified NN Group on 3 October that it would consider its proposal and would revert with its response without delay.
Delta Lloyd rose the most ever in Amsterdam trading after NN Group made the unsolicited cash offer — it climbed as much as 30.8% to €5.31, the biggest rise since its initial public offering in 2009, according to data from Bloomberg.
In a separate statement, Delta Lloyd has announced it would legally merge its Dutch and Belgian operations, which it said would lead to a 5% point improvement in its Solvency II capital ratio.
After second-quarter earnings NN reported a Solvency II ratio of 252% of the minimum level of core capital required, while Delta Lloyd’s stood at 173% of its minimum requirement after it had sold €650m worth of shares in a dilutive rights issue at €2.85 per share, and after it sold its 30% stake in bank Van Lanschot for €180m.