SCOR purchases millions of its own shares
SCOR purchases millions of its own shares | Insurance Business Australia
Insurance News
SCOR purchases millions of its own shares
Move part of call option under previous settlement agreement with Covéa
Insurance News
By
Terry Gangcuangco
Major reinsurer SCOR is acquiring nine million of its own shares as part of the call option in the company’s settlement agreement with Covéa.
In a release, SCOR said: “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 €28 per share.
“The board of directors of SCOR authorised the partial exercise of this call option for the purchase of 9,000,000 SCOR shares held by Covéa, representing 5.01% of SCOR’s share capital.”
It was announced that the shares, once delivered by Covéa to SCOR, will be sold to BNP Paribas Cardif via an over-the-counter transaction.
Serving as a peace pact between the previously warring firms, the 2021 settlement agreement outlined the implementation of an orderly exit by Covéa from the share capital of SCOR, the restoration of peaceful relations, and the implementation of quota share retrocession treaties. It all stemmed from a failed takeover bid by Covéa.
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