Picture: 123RF/COWARD_LION
Picture: 123RF/COWARD_LION

Rand Merchant Investment Holdings (RMI), which owns Outsurance, and Finnish insurer Sampo had made a joint takeover offer for British insurer Hastings, valuing it at £1.66bn (R37bn).

RMI and Outsurance, via jointly owned Mainstreet, have held 29.7% of Hastings since 2017, and would acquire an additional 0.3%, while Sampo would hold 70%.

The offer of 250 pence per Hastings share represents a 47.1% premium to the value of Hastings’s share on July 28, when it announced it had been approached with a takeover offer.

RMI would need to pay about £5.32m for its top-up transaction, funded from existing cash resources.

RMI said it saw long-term value in the UK’s insurance market, while Sampo is seeking to expand out of its traditional markets in the Nordic countries.

“Sampo believes that the UK, as the second-largest retail property and casualty market in Europe, offers an attractive scale opportunity,” the statement read.

In morning trade on Wednesday, RMI’s share was up 1.01% to R31.92, having risen 3.5% so far in 2020.

The offer is still subject to regulatory approval, with the parties saying on Wednesday that it was likely to become effective later in 2020.


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