Munich Re has acquired further shares in ERGO Versicherungsgruppe AG (ERGO) from Bayerische Hypo- und Vereinsbank AG (HVB) via an investment company.
This acquisition increases Munich Re’s direct and indirect holdings in ERGO’s share capital to more than 95%. At ERGO’s next Annual General Meeting, scheduled for 12 May 2010, a squeeze-out resolution is therefore to be adopted.
Nikolaus von Bomhard, Chairman of Munich Re’s Board of Management explained: “The squeeze-out that is now possible at ERGO will result in a significant simplification of shareholding structures, save costs, and further facilitate Group-wide cooperation within Munich Re”, .
At the same time von Bomhard emphasised: “ERGO is and remains a key business field in our Group. The planned squeeze-out is a logical step in our integrated insurance group strategy.”
The successful sales cooperation between ERGO and HVB will be continued.
ERGO’s minority shareholders will receive appropriate cash compensation for their shares. This will be determined by Munich Re on the basis of a company valuation and will total at least the weighted average ERGO share price for the last three months prior to today’s date.