Shareholders of Australian general insurer Promina Group Ltd. on Monday approved a proposed 7.4 billion Australian dollar ($5.75 billion) takeover by bank and insurance company Suncorp-Metway Ltd. Of the 8,922 shareholders who cast votes on the proposal, 94.2 percent were in favor of the acquisition.
“We believe that the merger of Promina and Suncorp is a logical, strategic combination,” said Promina Chairman Leo Tutt. “After consideration of these factors, the Promina board unanimously recommended that Promina shareholders vote in favor of the scheme.”
Tutt said he will become a non-executive director of the combined group, together with Promina directors Ewoud Kulk, Geoff Ricketts and Paula Dwyer.
Late last year, the Queensland-based Suncorp agreed to pay 0.2618 Suncorp shares and 1.80 Australian dollars ($1.40) cash for each Promina share, which is equivalent to 7.18 Australian dollars ($5.58) per Promina share based on latest market prices.
Shares of Sydney-based Promina fell 3.76 percent to 6.91 Australian dollars ($5.35) and Suncorp shares plunged 4.35 percent to 20.00 Australian dollars ($15.85) at Monday’s close.
Topics Australia
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