Athora Holding Ltd. will acquire Pension Insurance Corp. Group, according to a statement from Reinet Investments SCA, which holds an indirect 49.5% stake in the insurer .
Reinet first invested in PICG in 2012 , providing an initial £400 million , and the proposed deal could raise around £5.9 billion , including expected dividends , the Luxembourg-based investment firm said in a statement .
SBG Securities analyst Charles Russell wrote in a note to clients that PICG’s share price is below its current valuation in Reinet’s net assets. The brokerage also lowered its 12- month target price on Reinet from 841 rand to 713 rand .
PICG was the biggest contributor to Reinet’s net assets increasing by 11.8% year-on-year to €6.9 billion in the year ended March.
According to information on the PICG website, other shareholders of PICG are Luxinva, a division of the Abu Dhabi Investment Authority, and CVC Capital Partners Plc.
Source: Bloomberg