A specialist and integrated travel insurance, medical assistance and employee assistance provider has approved a $740 million takeover from a global insurance giant.

An overwhelming 99.83% of votes, by 96.81% of shareholders of Cover-More Group Limited, have backed a proposed acquisition of 100% of the company’s issued share capital by Zurich Insurance Company Ltd, through its wholly owned subsidiary Zurich Travel Solutions Pty Limited.

The deal will see investors receive $1.90 cash, plus a fully franked special dividend of $0.05 cash, for each Cover-More share they own, according to a report in The Australian. The $1.95 per share offer represented a 48% premium to the group’s last traded price prior to the Zurich offer.

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The travel insurer will now await approval of the scheme from the Federal Court of Australia, with a hearing scheduled for Friday (March 31).

Zurich had earlier announced that it intends to let Cover-More operate as a stand-alone entity and that it will retain its brand.
 

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