By Ian Walker


Nordic insurance company Sampo is buying the shares of Topdanmark that it doesn't already own in a deal that values the Danish insurance company at 33 billion Danish krone ($4.73 billion), consolidating its position within the property and casualty insurance market.

Under the deal accepting shareholders will get 1.25 Sampo A shares for each Topdanmark share held, the companies said on Monday. The offer values each Topdanmark share at DKK366.38 and is a 27% premium to the company's closing share price of DKK289.60 on Friday.

Sampo said that the offer, which is expected to start July/August, is the best and final and won't be increased. It is expected to close during September.

Alongside the offer Sampo said that it plans to buy back up to 800 million euros ($856.4 million) of its shares to offset the share-count dilution from the deal.

"By combining the businesses in a fully integrated Nordic operating platform, we can unlock growth and attractive synergies that will strengthen our position as a leading Danish P&C insurer," Sampo Chief Executive Torbjorn Magnusson said.

Sampo currently owns around 49.3% of Topdanmark's issued share capital, according to FactSet.

Sampo said that Topdanmark Chief Executive Peter Hermann will become deputy chief executive of If P&C Insurance Holding and member of the Sampo group executive committee upon completion of the offer.

The solvency II ratio--a measure of an insurer's financial strength--for the combined group is expected to be 171%, Sampo said.


Write to Ian Walker at ian.walker@wsj.com


(END) Dow Jones Newswires

06-17-24 0256ET