Delta Lloyd rejects NN Group´s €2.4bn takeover plan

Dutch insurer Delta Lloyd rejected NN Group’s €2.4bn takeover proposal as it remains committed to its capital and performance strategy.

The company said the proposal “substantially undervalues” Delta Lloyd, its prospects and its strategic opportunities as terms represented only 0.64 times its June’s book value and a dividend yield of 5.6%.

The cash offer from the biggest insurer in the Netherlands for Delta Lloyd at €5.30 per share “did not form an acceptable basis for such as transaction”, but the company maintained it was not “opposed to transactions that would create compelling value for shareholder and deliver benefits to other stakeholders”.

Delta Lloyd, which serves 4.2m customers, also said the timing of NN Group’s proposed takeover was “opportunistic” in light of the company's progress on its corporate strategy as it plans to merge its life businesses in the Netherlands and Belgium.

“This proposal is opportunistic in its timing, seeking to take control of the company before shareholders, customers and employees have fully benefitted from the realisation of management's plans.”

Hans van der Noordaa, chairman of Delta Lloyd, said: "We have considered NN Group's proposal carefully and have decided to reject it. We have a clear strategy and we are delivering on our priorities of capital, performance and customer.

“We have made good progress during 2016. Our capital position is now solid with opportunity to improve further capital generation and dividends. In light of this, we cannot accept this proposal."

Shares in Delta Lloyd NV were up 1.92% to €5.36 at 1033 CEST.