PartnerRe snaps up Paris Re in $2.6 billion deal
Bermuda-based PartnerRe has agreed to buy French-listed Paris Re in an all-stock reinsurance acquisition valued at $US2 billion ($2.6 billion).
Under terms of the deal, PartnerRe will buy out a 57% private equity stake in Paris Re in a 0.3 stock for stock exchange ratio, in addition to a 6% stake it has already acquired.
Swiss-based Paris Re will later distribute $US310 million ($396 million) in cash to shareholders, before PartnerRe begins a tender offer for the remaining Paris Re shares.
Paris Re was formed in 2006 when a group of investors acquired most of the reinsurance operations of Axa.
Under terms of the deal, PartnerRe will buy out a 57% private equity stake in Paris Re in a 0.3 stock for stock exchange ratio, in addition to a 6% stake it has already acquired.
Swiss-based Paris Re will later distribute $US310 million ($396 million) in cash to shareholders, before PartnerRe begins a tender offer for the remaining Paris Re shares.
Paris Re was formed in 2006 when a group of investors acquired most of the reinsurance operations of Axa.