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Zurich Unveils £7.7 Billion Cash Proposal for Beazley After Earlier Rebuff

Zurich faces a February 16 deadline to make a firm offer under UK takeover rules.

Overview

  • The revised all-cash approach offers 1,280p per share, valuing Beazley at about £7.7 billion and reflecting a 56% premium to its January 16 close.
  • Zurich’s January 4 proposal at 1,230p per share was rejected by Beazley’s board as significantly undervaluing the company.
  • Zurich says it would fund the acquisition with existing cash, new debt facilities and an equity placing, and it currently holds a 1.465% stake in Beazley.
  • Beazley shares jumped about 42% to a record high after the public proposal was disclosed.
  • Zurich says the combination would form a global specialty insurer with roughly $15 billion in gross written premiums and a strong Lloyd’s of London platform.