Brief: Alm. Brand To Acquire Danish Business Of Codan Forsikring

ALM. Brand A/S

11/06/2021 12:04

June 11 (Reuters) - ALM. Brand A/S  ALMB.CO :
    * REG-ALM. BRAND A/S TO ACQUIRE THE DANISH BUSINESS OF CODAN
FORSIKRING A/S
    * SYNERGIES ARE EXPECTED TO REACH APPROXIMATELY DKK 600
MILLION
PRE-TAX TO BE FULLY REALISED BY 2025
    * ACQUISITION IS EXPECTED TO GENERATE A RETURN ON INVESTMENT
(ROI)
OF ABOUT 7% AND HIGH TEENS EPS ACCRETION BY 2024 BASED ON FULLY
REALISED SYNERGIES.
    * HAS ENTERED INTO A BINDING AGREEMENT WITH INTACT FINANCIAL
CORPORATION ("INTACT") AND TRYG A/S ("TRYG"), THROUGH THEIR
JOINTLY-OWNED SUBSIDIARY SCANDI JV CO 2 A/S ("SELLER"), WHEREBY
ALM. BRAND WILL ACQUIRE CODAN FORSIKRING A/S'S ("CODAN
FORSIKRING") DANISH BUSINESS ( "ACQUISITION")
    * ACQUISITION IS CURRENTLY EXPECTED TO COMPLETE DURING FIRST
HALF
OF 2022
    * AT COMPLETION OF ACQUISION, ALM. BRAND WILL ACQUIRE 100%
OF
ISSUED AND OUTSTANDING SHARES IN CODAN DK INTO WHICH BUSINESS OF
CODAN FORSIKRING'S DANISH BUSINESS WILL HAVE BEEN TRANSFERRED
PRIOR TO COMPLETION.
    * CONSIDERATION UNDER TERMS OF ACQUISITION VALUES CODAN
FORSIKRING'S DANISH BUSINESS AT APPROXIMATELY DKK 12.6 BILLION,
PAYABLE IN CASH.
    * INTENDS TO LAUNCH A RIGHTS ISSUE TO RAISE GROSS PROCEEDS
OF
APPROXIMATELY DKK 11.6 BILLION ( "RIGHTS ISSUE") TO FINANCE A
PART OF ACQUISITION
    * RIGHTS ISSUE IS EXPECTED TO BE LAUNCHED IN SECOND HALF OF
2021
    * ACQUISITION IS EXPECTED TO DELIVER VALUE FOR SHAREHOLDERS
WITH
AN EXPECTED ROI OF APPROXIMATELY 7% AND HIGH TEENS EPS ACCRETION
BY 2024, THEREFORE CREATING SIGNIFICANT POTENTIAL TO INCREASE
ORDINARY DIVIDEND OVER TIME.

Source text for Eikon:  ID:nGNE8Q0r1Z 
Further company coverage:  ALMB.CO 

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