Delphi Financial Group (DFG) jumped 73% to $44 per share on Wednesday after a Japanese company Tokio Marine said it would buy the insurer for $2.66 billion, or $43.875 per Class A share.
The purchase price represents a 72.5% premium to Tuesday’s close and a 59% premium to Delphi’s average stock price over the past 12 months. Delphi shareholders will also get a $1 special dividend payment for each Class A or Class B share they own.
“The Tokio Marine Group has been seeking continued expansion of its international insurance business as a major driving force of its mid to long term growth strategy,” said Tokio Marine President Shuzo Sumi. “The acquisition of Delphi is an important step in this development, serving to further diversify our business mix in the United States.”
The surging yen has made Japanese companies more interested in buying overseas companies.
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