Latest news with #Baloise
Mint
26-04-2025
- Business
- Mint
Switzerland Inc. Fends Off Activist Cevian With Insurance Merger
(Bloomberg) -- When Cevian Capital boosted its stake in Swiss insurer Baloise Holding AG last year, insurance firms across Europe got ready for the activist investor to go straight for its usual playbook. Companies including Axa SA and Allianz SE began to study whether Cevian's engagement could put the Basel-based company, or some of its divisions, into play as takeover targets. Cevian has a track record of triggering often dramatic strategic change, at times even breaking up longstanding businesses. At Baloise, where it had a stake of about 9%, it pushed management to focus on its core Swiss business and sell other assets, such as a regional lender and a struggling German unit, Bloomberg News has reported. In the end, the Swiss establishment found its own solution to keep foreign buyers at bay, and get Cevian off their backs. First, Basel-based Baloise announced that it had agreed on a rare 'merger of equals' with Helvetia Holding AG, a similarly-sized insurer a 2 1/2-hour drive away in the city of St. Gallen. Bankers and investors speculated that a counter bid could emerge, especially if Cevian was to reject the transaction when it's put to shareholders. Then Patria, a little-known cooperative that is also Helvetia's biggest shareholder, approached Cevian and bought its stake. That sale, announced Friday, lowers the likelihood of any disruption to the deal, even if some question the benefits of a combination. 'I struggle to see the financial logic of this deal,' Kevin Ryan, a Bloomberg Intelligence analyst, said when the tie-up was first announced. 'It appears to be a defensive move against activist investor Cevian with making as little changes as possible.' The combination of the firms will create Switzerland's second-largest insurance company. Patria will hold roughly 22% in the combined entity, analysts at BNP Paribas SA estimate. The cooperative represents the interests of Helvetia's policy holders and its statutes say it protects the interest of Helvetia's economic independence. Patria 'has made it clear that it supports the transaction,' a spokesperson for Baloise said. 'We are pleased that Helvetia's largest shareholder is convinced of the strategic fit and supports the merger of equals.' Helvetia and Cevian declined to comment. 'We very strongly believe in the merger between Helvetia and Baloise,' Patria said in a statement. 'By seizing the opportunity to acquire the Cevian package in Baloise, we are maintaining our position as a reliable principal shareholder.' While Cevian didn't succeed in getting Baloise to streamline its operations, it still walks away with a gain on its investment, which it didn't disclose. Baloise shares closed at 184.20 francs in Zurich on Friday, compared with around 130 francs when reports surfaced in 2023 that Cevian was considering an investment. The sale to Patria is 'a neat conclusion for Cevian,' said Iain Pearce, an analyst at BNP. Based on an estimated 140 francs ($169) paid on average per Baloise share, the investment firm will make a 'tidy profit,' he said. Cevian's investment in Baloise stretches back to late 2023. Last year, it helped to abolish a rule at the insurer that capped any investor's voting rights at 2%, regardless of the amount of stock they owned. The removal of the curb made it easier to push for changes. 'Cevian's engagement was the catalyst for change at Baloise,' said Jens Tischendorf, an ex-partner at Cevian and co-founder of Active Value Partners. Cevian's relationship with Baloise Chairman Thomas von Planta subsequently soured, according to people familiar with the matter. Von Planta will now oversee the strategy of the combined firm, which will be named Helvetia Baloise. Helvetia Chief Executive Officer Fabian Rupprecht will run the day to day business as CEO. The all-share deal values Baloise at about 8.4 billion Swiss francs based on the firms' latest closing prices. Bloomberg reported earlier that the companies had been exploring a possible combination. Cevian has pushed through far more significant moves elsewhere. At RSA Insurance Group Plc, it took a stake and eventually saw the company's sprawling operations broken up, with Intact Financial Corp. and Tryg A/S buying different pieces. The strategy has made billionaires of Cevian's founders Lars Foerberg, who lives in Switzerland, and Christer Gardell. Their firm also took a stake in UBS Group AG after the government-brokered takeover of Credit Suisse. More stories like this are available on First Published: 26 Apr 2025, 11:51 AM IST
Reuters
25-04-2025
- Business
- Reuters
Baloise says Patria acquires 9.35% stake from Cevian ahead of merger with Helvetia
April 25 (Reuters) - Baloise (BALN.S), opens new tab on Friday said that Patria Genossenschaft had acquired a 9.45% stake in the Swiss insurer, which this week announced plans to merge with competitor Helvetia. Patria is Helvetia's main shareholder. The shares were acquired from Cevian Capital, Baloise said, an activist investor which up until now had not commented on the planned merger. The acquisition was unconditional and the parties agreed not to disclose the purchase price, Baloise added. Patria will be able to vote with the newly acquired shares at the Extraordinary General Meeting of Baloise to be held on May 23 regarding the merger with Helvetia, Baloise said, adding it would not nominate a seventh board member in connection with the merger with Helvetia. As a result, the board of the combined company Helvetia Baloise Holding Ltd will have a total of 13 instead of 14 members after the merger, Baloise said.
Yahoo
24-04-2025
- Business
- Yahoo
Swiss insurers Helvetia and Baloise plan merger
Swiss composite insurance groups Helvetia and Baloise have revealed plans to merge, with the move aimed at 'expanding the companies' capabilities and enlarging their individual distribution networks'. The merged entity will operate under the name Helvetia Baloise Holding, with headquarters in Basel and a presence in St. Gallen, the current location of Helvetia's headquarters. Under this 'merger of equals', Baloise shareholders will receive 1.0119 new shares of Helvetia for each share held. Helvetia Baloise will become the second-largest insurance group in Switzerland with business volumes of SFr20bn upon deal completion, the joint release stated. It will operate in around eight countries and feature a global specialty business. The future structure will see a combined workforce of more than 22,000 and a total of SFr8.6bn in gross premiums in the life business and SFr11.5bn in the non-life business. The Helvetia Baloise Holding will be listed on the SIX Swiss Exchange, with the ticker symbol 'HBAN'. The deal awaits regulatory and anti-trust approvals, with completion anticipated in the fourth quarter of 2025. Patria Genossenschaft, Helvetia's largest shareholder with 34.1% share capital, has approved the merger. The Board of Directors of the combined group will have 14 members, seven from each company. The executive board will include CEO Fabian Rupprecht from Helvetia and deputy CEO and head of integration Michael Müller from Baloise. Rupprecht said: "We are very excited about this amazing opportunity to build a European insurance leader with strong Swiss roots. Helvetia Baloise will become the largest employer in the Swiss insurance industry with the greatest possible proximity to customers. This, coupled with the combined expertise of two players that each have been successful for over 160 years, are key factors for future success and sustainable value generation for all our stakeholders." Müller stated: "The complementary strengths of the two companies make Helvetia Baloise a relevant insurance and finance partner with Swiss roots and a strong market presence in Europe. The merger adds gravity in our markets and unlocks a new era and opportunities to deliver focused, yield-oriented growth to our shareholders." J.P. Morgan Securities is the exclusive financial advisor to Helvetia, while Morgan Stanley International is leading the advisory for Baloise with UBS also providing financial advice. Legal counsel for the companies is provided by Walder Wyss for Helvetia and Lenz & Staehelin for Baloise. "Swiss insurers Helvetia and Baloise plan merger " was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
23-04-2025
- Business
- Yahoo
Swiss insurers Helvetia and Baloise to merge to create top 10 company
By John Revill ZURICH (Reuters) -Helvetia and Baloise plan to merge to create Switzerland's second-largest insurance group with a combined business volume of 20 billion Swiss francs ($24.69 billion), the pair said on Tuesday. The new group, to be called Helvetia Baloise Holding, will become one of the ten largest insurers in Europe, under what the two companies called a "merger of equals" with an even spread of senior executives and board members. The deal, which is expected to be completed in the fourth quarter of 2025, is the latest in the insurance sector after Belgium's Ageas agreed to buy British car and home insurer esure for 1.3 billion pounds last week. Helvetia CEO Fabian Rupprecht will take the helm of the new firm while Thomas von Planta, currently chairman at Baloise, will lead the combined group's board of directors. Before the deal was announced, Helvetia had a market capitalisation of 9.6 billion Swiss francs, while Baloise was valued at around 8.5 billion francs. The exchange ratio will be 1.0119 new Helvetia shares for each Baloise share, with shareholders asked to give their approval at special meetings on May 23. Helvetia shareholders will hold 53% of the combined group, which will have a logo based on the one used by Baloise, whose base in Basel will be also be the new head office. "The transaction will ensure the long-term attractiveness and competitiveness of the two long-standing Swiss companies in the local and international insurance market and generate superior value for customers, partners, employees, the public and shareholders," von Planta said. In addition to the companies' existing cost improvement plans, the merger is expected to generate annual savings of around 350 million Swiss francs ($433 million) before taxes. Around two thirds of the savings will come from cuts to the 22,000-strong combined workforce, although the company said it was too early to give a figure. Activist investor Cevian Capital Partners, which holds a 9.4% stake in Baloise had been campaigning for changes at the company. It declined to comment on the deal. The merger does not come as a complete surprise following speculation in recent months, said Zuercher Kantonalbank analyst Georg Marti. "The new group will be an important competitor, from which shareholders can benefit with better financial figures," he said. ($1 = 0.8101 Swiss francs) (Writing by John Revill and Miranda Murray; Editing by Edwina Gibbs, Kirsten Donovan)
Wall Street Journal
22-04-2025
- Business
- Wall Street Journal
Helvetia, Baloise to Merge to Create Switzerland's Second-Largest Insurer
Helvetia HELN 0.61%increase; green up pointing triangle Holding and Baloise BALN 1.64%increase; green up pointing triangle Holding said they plan to merge to create Switzerland's second-largest insurer, with a combined market value of 18.1 billion Swiss francs ($22.38 billion). The Swiss insurers said Tuesday that the deal would be structured as a merger of equals, with Baloise merging into Helvetia. Under the deal, Baloise shareholders would get 1.0119 Helvetia shares for each Baloise share held, they said.
