French reinsurer SCOR has rejected a $9.6bn acquisition offer from its biggest shareholder Covéa, a French mutual insurance firm.
Covéa currently owns an 8.2% stake in SCOR and last month offered to purchase a majority stake in SCOR’s share capital and voting rights.
The offer, valued at €43 a share, was 21% more than Scor’s closing share price.
Covéa intended to fund the transaction with existing resources as well as committed debt from British lender Barclays and Swiss investment bank Credit Suisse.
However, SCOR has turned down the proposal, saying it was not aligned to its strategy of independence. The decision to spurn the offer is said to be unanimous.
“On August 30, 2018, SCOR’s Board of Directors reviewed the terms and conditions of this unsolicited proposal in detail and determined that it is fundamentally incompatible with SCOR’s strategy of independence, which is a key factor of its development, that it would jeopardise the Group’s strong value-creating strategy and that it reflects neither the intrinsic value nor the strategic value of SCOR,” the reinsurer said in a statement.
SCOR also confirmed that it has trust in its management to “continue to create value”.
Although Covéa has currently withdrawn the offer, it is still interested in a friendly transaction.