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.”