Major acquisition approved by shareholders

Major acquisition approved by shareholders | Insurance Business

Major acquisition approved by shareholders
Steadfast has welcomed the decision at a scheme meeting of Calliden investors to approve the 100% take-over bid by the broker network.

Shareholders convincingly accepted the proposed takeover with 93% agreeing with the acquisition.

Robert Kelly, managing director and CEO of Steadfast, hailed the deal as a “significant milestone” for Steadfast.

“We are thrilled to reach this significant milestone in acquiring most of Calliden’s underwriting agencies. These agencies will complement our existing mix of specialised agencies and make Steadfast one of the largest agency groups in Australia with annual gross written premium of over $335 million.”

It was also announced that upon implementation of the scheme, Steadfast will immediately sell Calliden’s general insurance operations and part of the agency operations to Munich Holdings of Australasia, a subsidiary of Munich Re.

“We are also very pleased to strengthen our strategic partnership with Munich Re, one of the world’s leading reinsurance companies, and its subsidiary Great Lakes Australia,” Kelly said of this transaction.

Chairman of Calliden, Richard Hill, told shareholders in Sydney at the scheme meeting on Monday: "I would like to congratulate Calliden shareholders.

"As a consequence of the resolution having been approved by the requisite majorities of Calliden shareholders, and subject to the court approving the scheme at the second court hearing on Thursday, 11 December 2014, the scheme will become effective on Friday, 12 December 2014 and eligible Calliden shareholders are expected to receive the special dividend on 19 December 2014 and the scheme consideration on 23 December 2014."