SCOR exercises call option to buy 9m of its shares held by Covéa

The board of directors of French reinsurance giant SCOR have authorised the partial exercise of the call option to purchase 9,000,000 SCOR shares held by Covéa, representing 5.01% of SCOR’s share capital.

Under the June 2021 settlement agreement entered into between SCOR and Covéa in the presence of the Autorité de Contrôle Prudentiel et de Résolution, Covéa granted SCOR a binding and irrevocable call option on its full stake in SCOR – representing 8.8% of the share capital – at a price of EUR 28 per share.

The French reinsurer noted that once delivered by Covéa to SCOR, the shares will be sold to BNP Paribas Cardif through an over-the-counter transaction.

For some background on the situation, back in September of 2018, SCOR rejected a “hostile and unfriendly” acquisition offer by Covéa of €8.2 billion (US $9.6 billion), calling for Thierry Derez CEO of Covéa, to permanently resign from SCOR’s Board of Directors, which he did in November of 2018.

At the time, Covéa held an 8.2% stake in SCOR, having been its largest shareholder since April 2016.

As mentioned, in June of 2021, following the failed takeover talks that led to a string of accusations and investigations, the two firms elected to renew their relationship based on “trust and mutual support”.

The post SCOR exercises call option to buy 9m of its shares held by Covéa appeared first on ReinsuranceNe.ws.