Omega Terminates Takeover Talks

Bermuda-based Omega Insurance Holdings Limited, which also focuses on the Lloyd’s and U.S. markets, announced that takeover discussions “with potential offerors” have been terminated.

Last February Omega’s Board announced “that it was in discussions with a number of parties who had expressed an interest in acquiring the Company,” said the bulletin. “Since that time the Board has pursued discussions with the potential offerors and whilst the parties have indicated interest in acquiring the Company at a premium to the current share price, the Board believe that the proposed indicative offers undervalue the long term value inherent in the Company and have decided to terminate talks with all parties.” As a result the Board is “no longer in talks regarding a possible takeover.”

The Board also indicated that “trading by the Omega Group in the current financial year continues to be strong and in line with the Directors’ expectations and the Board is confident of the future prospects of the business. In particular, Omega US, the group’s US insurance company, is now eligible to write surplus lines business in 24 states with other approvals expected shortly.”

Chairman Walter Fiederowicz commented: “We went into bid talks with an open mind, fully accepting that if a party would pay the right price for our franchise today then we would act accordingly in the best interests of shareholders. Our people and our business have come through quite extensive due diligence in the best light, but we do not believe that bidders’ valuations adequately reflect the value of Omega today and the value of what we are building in Bermuda and in the US.”

Source: Omega – www.omegauw.com

Topics USA