Direct Line Group still not happy with new Ageas proposal

Board "confident in standalone prospects"

Direct Line Group still not happy with new Ageas proposal

Mergers & Acquisitions

By Terry Gangcuangco

Ageas’ “improved” possible offer to snap up Direct Line Insurance Group (Direct Line Group or DLG) has been turned down by the Bromley-headquartered insurer.

“Following the rejection of the initial possible offer by Direct Line on January 29, 2024, Ageas has improved the terms of its possible offer, which were shared with the board of Direct Line on March 9, 2024,” the Belgian group noted.

“Under the terms of Ageas’ improved possible offer, Direct Line shareholders would receive 120 pence in cash for each Direct Line share and one newly issued Ageas share for every 28.41107 Direct Line shares.”

DLG’s board, which confirmed it received a second non-binding indicative proposal from Ageas, considered the new offer with its advisers.

Announcing the board’s decision, DLG said: “The board… continues to believe the latest proposal is uncertain, unattractive, and that it significantly undervalues Direct Line Group and its future prospects while also being highly opportunistic in nature.

“Accordingly, the board unanimously rejected the latest proposal.

“The board is confident in Direct Line Group’s standalone prospects. Direct Line Group will release its 2023 preliminary results on Thursday, March 21, 2024, and will also then provide an update on further initiatives to build on the operational improvements implemented during 2023.”

DLG is now led by Aviva alumnus Adam Winslow, who took the helm as chief executive on March 1.

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