NN Group launches all-cash offer for Delta Lloyd

NN Group launched an all-cash unsolicited takeover offer for Delta Lloyd NV, catapulting shares in the Amsterdam-based life insurer higher.

Europe and Japan-focused NN Group offered to pay €5.30 a share, a roughly 29% premium on Delta Lloyd´s closing price in the previous session.

“We believe there is a clear and compelling logic to bring consolidation to the Dutch insurance market through a combination of the businesses of NN Group and Delta Lloyd in a way that benefits both companies and their stakeholders," NN´s chief executive officer Lard Friese said in a statement.

The deal will be financed through existing resources and external debt, including the suspension of the outstanding part of a €500m share buyback programme.

NN´s buy-out followed a lack of a response from Delta Lloyd management to an invitation to discuss a tie-up.

A combination of the two companies would result in increased scale and efficiency, driving significant expected earnings per share, free cash flow and dividend per share accretion, together with a "robust" balance sheet and solid solvency position, NN said.

"NN Group will submit a request to the Dutch Central Bank for a declaration of no objection to pursue the transaction," the company said in a statement.

As of 0918 BST shares in Delta Lloyd were 28.50% higher at €5.29.