Amlin shares surge on Mitsui Sumitomo deal
Shares in Amlin surged after Japan's Mitsui Sumitomo Insurance Company said it has agreed to buy the UK insurer for £3.47bn.
Aston Martin Lagonda Global Holdings
133.20p
17:10 02/05/24
FTSE 250
20,052.33
17:15 02/05/24
FTSE 350
4,492.44
16:49 02/05/24
FTSE All-Share
4,446.15
17:04 02/05/24
Insurance (non-life)
3,582.40
16:49 02/05/24
Under the terms of the deal, Mitsui will pay 670p a share for Amlin, whose shareholders will be eligible for an 8.4p per share dividend on 1 October.
The deal values the Lloyd’s of London insurer at around £3.5bn.
Charles Philipps, chief executive of Amlin, said: "We believe that this combination is extremely compelling. We have always had a very high regard for MSI, our strategies and corporate values are closely aligned, and this transaction will now provide Amlin with the increased scale and financial muscle that will be required for long term success in our industry.
“It delivers excellent value for shareholders, improved career prospects for our employees, and enhanced continuity and security for our clients. I am confident that, with our combined skills and geographic coverage, we will continue to go from strength to strength.”
RBC Capital Markets said the deal was highly attractive for Amlin.
“The recommended cash offer for Amlin by Mitsui Sumitomo represents strong value for shareholders, in our view, at the highest takeout multiple seen in the sector in recent times,” the Canadian bank said.
As a result of the deal, it upgraded its rating on the stock to ‘sector perform’ from ‘underperform’ and lifted its price target to 675p from 435p.
At 0820 BST, Amlin shares were up 33.2% at 656p.