LONDON – Direct Line (LON:) Insurance coverage Group PLC (LSE:DLG) has rejected an unsolicited acquisition proposal from Aviva PLC (LSE:LON:), deeming the provide to be extremely opportunistic and undervaluing the corporate. The proposal, made on November 19, 2024, steered an acquisition of Direct Line’s whole issued and to be issued share capital, with a mixture of money and Aviva shares.
The phrases of the proposal outlined a suggestion of 112.5 pence in money and 0.282 new Aviva shares for every Direct Line Group share, implying a price of 250 pence per Direct Line Group share based mostly on Aviva’s closing share worth as of November 18, 2024.
After cautious consideration with its advisers, Direct Line’s Board unanimously selected Monday to reject the proposal. The Board believes that the provide considerably undervalues Direct Line Group and doesn’t mirror the standalone worth the corporate can ship. The Board expressed confidence within the firm’s new management workforce and its strategic plan, which is anticipated to attain development in profitability, capital era, and shareholder returns.
In keeping with the principles set by the Metropolis Code on Takeovers and Mergers, Aviva now has till 5:00 p.m. on December 25, 2024, to both announce a agency intention to make a suggestion in accordance with Rule 2.7 of the Code or to declare that it doesn’t intend to make a suggestion, which might be topic to Rule 2.8 of the Code. This deadline could also be prolonged with the consent of the Panel on Takeovers and Mergers.
The announcement of the potential provide has initiated an ‘provide interval’ for Direct Line Group in accordance with the Code. Shareholders are suggested to pay attention to the disclosure necessities beneath Rule 8 of the Code, which governs the conduct of events throughout a suggestion interval.
Jane Poole, Chief Monetary Officer of Direct Line Group, is liable for arranging the discharge of this announcement. The data on this article relies on a press launch assertion from Direct Line Insurance coverage Group PLC.
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