Australian life insurer ClearView Wealth said on Tuesday it has agreed to be acquired by a local unit of Zurich Insurance Group, Europe’s second-largest insurer by market value, for A$408.3 million ($288.30 million).
Under the deal, Zurich Financial Services Australia will pay ClearView shareholders 65 Australian cents per share in cash, representing a premium of 21.5% to the stock’s last close.
ClearView shares jumped as much as 18.7% to 63.5 Australian cents, their highest since late July 2024.
The life insurer’s directors have unanimously recommended that shareholders to vote in favour of the proposal, provided no superior offer emerges.
Crescent Capital Partners, the life insurer’s largest shareholder with a 53% stake, also intends to back the acquisition.
“While we remain confident in the long-term outlook for the business… the scheme enables ClearView shareholders to realise full liquidity and certain value for their ClearView shares,” said ClearView Chair Geoff Black.
Under the scheme, ClearView is permitted to pay one or more dividends of up to 5 Australian cents a share before its implementation.
The Sydney‑based insurer’s directors currently plan to consider a special dividend of that amount.
The takeover offer will be reduced by the amount of dividend declared, the company said.
Source: Reuters.com