This is a press release by NN Group N.V. ("NN Group"), pursuant to the provisions of Section 5 Paragraph 2 of the Decree on Public Takeover Bids (Besluit Openbare Biedingen Wft) in connection with a potential voluntary public offer by NN Group for all the issued and outstanding ordinary shares in the capital of Delta Lloyd N.V. ("Delta Lloyd"). This announcement does not constitute an offer, or any solicitation of any offer, to buy or subscribe for any securities. Any offer will be made only by means of an offer memorandum. This announcement is not for release, publication or distribution, in whole or in part, in or into, directly or indirectly, the United States, Canada or Japan or in any other jurisdiction in which such release, publication or distribution would be unlawful.
Intended all-cash offer of EUR 5.30 per share for all issued and outstanding ordinary shares of Delta Lloyd, for a total consideration of EUR 2.4 billion
A premium of approximately 53% over the last 3-months average closing price and 29% over the last closing price of EUR 4.12 per share
Creation of a well-diversified leader in the Dutch pensions, life & non-life insurance and banking sectors, with a strong asset management platform, attractive international presence, ample growth opportunities and appealing customer propositions
Increased scale and efficiency will drive significant expected EPS, free cash flow and DPS accretion
Robust combined balance sheet and solid solvency position
NN Group intends to finance the all-cash offer using existing cash resources and external debt
NN Group has provided its proposal to the Executive Board and the Supervisory Board of Delta Lloyd, and has invited them to discuss this proposal with a view to come to a recommended transaction
NN Group will submit a request to the Dutch Central Bank for a declaration of no objection to pursue the transaction
NN Group announces today that it has shared its views on the rationale and the benefits of combining Delta Lloyd and the Dutch and Belgian activities of NN Group with the Executive Board and the Supervisory Board of Delta Lloyd. NN Group has submitted a proposal to the Boards of Delta Lloyd to combine these activities by way of a public tender offer to be made by NN Group for the entire issued and outstanding ordinary share capital of Delta Lloyd for EUR 5.30 in cash per ordinary Delta Lloyd share.
To date, the Boards of Delta Lloyd have not accepted NN Group's invitation to discuss its proposal and negotiate a recommended transaction.
Further details of the intended offer
The offer price of EUR 5.30 (cum dividend) in cash per ordinary Delta Lloyd share represents:
a premium of approximately 29% over the closing price of EUR 4.12 per ordinary Delta Lloyd share on 4 October 2016;
a premium of approximately 36% relative to the average closing price of an ordinary share of Delta Lloyd during the last month; and
a premium of approximately 53% relative to the average closing price of an ordinary share of Delta Lloyd during the last three months.
The offer will provide Delta Lloyd's shareholders with an immediate, certain and attractive cash value. NN Group believes the offer price represents full and fair value to Delta Lloyd's shareholders. NN Group intends to finance the all-cash offer using existing cash resources and external debt. It is expected that the transaction will be EPS, free cash flow and DPS accretive. NN Group will complete the previously announced share buybacks to neutralise the stock dividends. The remaining outstanding part of the EUR 500 million share buyback programme will be suspended in light of today's announcement.
Stronger businesses and synergies
A combination of Delta Lloyd and the Dutch and Belgian activities of NN Group is financially and strategically compelling and beneficial to the companies' stakeholder groups. Combining these activities meets the key criteria of NN Group's disciplined capital deployment strategy and provides the following expected benefits:
Expected to deliver significant EPS, free cash flow and DPS accretion;
Maintaining a strong balance sheet and solvency position;
Creating value through additional scale, cost synergies and capital diversification;
Strengthening the commercial platform, cementing market leading positions; and
Further enhancing our customer proposition by complementing our product offering and distribution.
Lard Friese, CEO of NN Group: 'Since our IPO in 2014, we have been focused on the execution of our strategy, delivering an excellent customer experience and pursuing growth in selected European markets and Japan. Our financial position is robust, allowing us to focus on further improving our businesses and delivering value to our shareholders. We believe there is a clear and compelling logic to bring consolidation to the Dutch insurance market through a combination of the businesses of NN Group and Delta Lloyd in a way that benefits both companies and their stakeholders. The combination will be a leading player in the Dutch insurance, banking and asset management markets, with a strong international presence, which will benefit from economies of scale and significant free cash flow generation potential, and offer an array of attractive products and services to customers.'
NN Group is ready to move swiftly and is in a position to complete a confirmatory due diligence simultaneously with the negotiation of a merger protocol with a view to come to a recommended transaction within a short period of time. NN Group expects such merger protocol to be customary for transactions of this nature, in particular with respect to non-financial covenants relating to employees, integration, governance, strategy, organisation and post-closing restructurings.
The offer will be subject to customary pre-offer and offer conditions precedent for transactions of this nature, including, but not limited to, a minimum acceptance level, anti-trust clearance and other regulatory approvals, including from the Dutch Central Bank. NN Group looks forward to engaging with the NN Group and Delta Lloyd Works Councils to share with them its views on the combination.
Other
To the extent permissible under applicable law or regulation, NN Group and its affiliates or brokers (acting as agents for NN Group or its affiliates, as applicable) may from time to time after the date hereof, and other than pursuant to the intended offer, directly or indirectly purchase, or arrange to purchase, ordinary shares in the capital of Delta Lloyd, that are the subject of the intended offer. To the extent information about such purchases or arrangements to purchase is made public in the Netherlands, such information will be disclosed by means of a press release to inform shareholders of such information, which will be made available on the website of NN Group. In addition, financial advisors to NN Group may also engage in ordinary course trading activities in securities of Delta Lloyd, which may include purchases or arrangements to purchase such securities.
reactie XEA.nl
Daar worden aandeelhouders van Delta Lloyd niet blij van.
Delta Lloyd versterkt positie Nederlandse en Belgische levensverzekeraar
Delta Lloyd heeft een strategische review van de Belgische activiteiten gedaan en heeft het voornemen de structuur van de Belgische activiteiten te vereenvoudigen. Deze juridische vereenvoudiging houdt in dat Delta Lloyd Life NV in België fuseert met Delta Lloyd Levensverzekering NV in Nederland. Dit versterkt de Solvency II Standard Formule ratio (SF ratio) van de groep met ca. 5pp. Wij blijven commercieel actief op de voor ons belangrijke Belgische markt.
Leon van Riet, lid Raad van Bestuur: "Deze vereenvoudiging past bij de prioriteiten kapitaal, klant en resultaat die wij voor de middellange termijn hebben gesteld. De vereenvoudiging levert een aanzienlijke bijdrage aan de versterking van ons kapitaal en aan het verder verbeteren van het rendement. België is als tweede thuismarkt belangrijk voor ons en wij streven naar een versterking van onze concurrentiepositie in onze kernmarkten."
Delta Lloyd Life is in België een middelgrote verzekeraar, die zich richt op aantrekkelijke segmenten in de markt van levensverzekeringen en beschermingsoplossingen voor met name zelfstandigen, KMO's en particulieren. Om de goede concurrentiepositie van de laatste jaren te behouden zal Delta Lloyd Life de operationele performance en het rendement verder moeten verbeteren, waarbij de focus ligt op het aanbieden van meer capital light oplossingen. Delta Lloyd Life is tot op heden een aparte vennootschap, onder toezicht van de Nationale Bank België (NBB).
Eén juridische entiteit en risicodrager
De levensverzekeringsentiteiten van Delta Lloyd in Nederland en België zullen, onder voorbehoud van goedkeuring door de toezichthouders, per 1 januari 2017 fuseren tot één juridische entiteit en risicodrager die gevestigd is in Nederland en onder toezicht staat van De Nederlandsche Bank (DNB). Het managementteam zal bestaan uit een combinatie van de huidige Nederlandse en Belgische directieleden. De vereenvoudiging versterkt de Solvency II SF ratio van Delta Lloyd Levensverzekering met ca. 10pp, onder meer door portfoliodiversificatie. De Solvency II SF ratio van de groep stijgt hierdoor met ca. 5pp. Deze positieve effecten op onze kapitaalpositie zullen na afronding in 2017 gerealiseerd worden. De vereenvoudiging leidt bovendien tot een harmonisatie van het kapitaalbeleid en het stroomlijnen van rapportages en verantwoording naar toezichthouders.
Belgische activiteiten blijven commercieel en operationeel zelfstandig
De vereenvoudiging heeft geen gevolgen voor onze service aan de ca. 630.000 Delta Lloyd klanten in België. Delta Lloyd blijft commercieel en operationeel actief in België als bijkantoor, met lokaal management onder leiding van de huidige directievoorzitter van Delta Lloyd Life, Filip Depaz. De directe aanwezigheid in België biedt de beste uitgangspositie voor het versterken van onze concurrentiepositie in deze kernmarkt.
Verbetering van operationele performance
De vereenvoudiging zal in de toekomst bijdragen aan het verbeteren van de operationele performance. Door het creëren van schaalvoordelen kunnen kosten worden bespaard, op gebied van IT en innovatie en in de samenwerking met leveranciers. Onze klanten in België en Nederland zullen daarnaast profiteren van meer efficiency, het vergroten van de marktkennis in de organisatie, een betere samenwerking en de uitwisseling van kennis en kunde. De vereenvoudiging heeft geen gevolgen voor de medewerkers, zij treden met behoud van arbeidsvoorwaarden in dienst van Delta Lloyd Levensverzekering in Nederland.
Vervolgstappen
Delta Lloyd heeft de aanvraag voor het fuseren van de Nederlandse en Belgische levensverzekeringsentiteiten ingediend bij de NBB en DNB. De Belgische ondernemingsraad is geïnformeerd over de voorgenomen fusie en zal hierover worden geconsulteerd, de Nederlandse ondernemingsraad zal advies worden gevraagd over de voorgenomen fusie.
Benoemingen bij Delta Lloyd
Filip Depaz (47) is per 1 oktober 2016 benoemd tot algemeen directeur van Delta Lloyd Life in België. Hij vervulde deze functie al op interim basis sinds 1 juli 2016. Filip Depaz was hiervoor als lid van het directiecomité verantwoordelijk voor Operations, ICT & Facilities. Hij werkt in totaal 14 jaar voor Delta Lloyd Life.
Filip Depaz zal bovendien na afronding van de aangekondigde fusie toetreden tot het managementteam van Delta Lloyd Levensverzekering in Nederland, onder voorbehoud van goedkeuring van De Nederlandsche Bank. Het is het voornemen dan ook Peter Brewee (44), de huidige CRO van Delta Lloyd Life, te benoemen tot Chief Risk Officer van Delta Lloyd Levensverzekering, eveneens onder voorbehoud van goedkeuring van De Nederlandsche Bank. Peter Brewee werkt in totaal 20 jaar voor Delta Lloyd Life.
Het managementteam van Delta Lloyd Levensverzekering zal dan bestaan uit: Gerard van Rooijen (algemeen directeur), René Tuitert (CFO), Peter Brewee (CRO), Diederik Schouten (Leven zakelijk), Annemieke Visser (Leven particulier), Filip Depaz (België).
Delta Lloyd acknowledges receipt of NN Group's press release of today
Delta Lloyd N.V. ("Delta Lloyd") has noted the public announcement this morning by NN Group N.V ("NN Group"). Delta Lloyd confirms that it received a letter, dated 2nd October which outlined a conditional, unsolicited proposal to combine the businesses of Delta Lloyd and NN Group through a public offer by NN Group for all of the issued ordinary shares in the capital of Delta Lloyd at a price of €5.30 per ordinary share with the consideration to be paid fully in cash.
Delta Lloyd notified NN Group on 3 October 2016 that it would consider its proposal and would revert with its response without delay.
The Supervisory Board and Executive Board of Delta Lloyd, acting in accordance with their fiduciary duties, are carefully reviewing and considering NN Group's proposal together with their financial and legal advisers Goldman Sachs International and Allen & Overy, taking the interests of Delta Lloyd's stakeholders, including its shareholders, into consideration.
Delta Lloyd will make further announcements if and when required.
This is a public announcement by Delta Lloyd N.V. pursuant to section 17 paragraph 1 of the European Market Abuse Regulation (596/2014). This public announcement does not constitute an offer, or any solicitation of any offer, to buy or subscribe for any securities in Delta Lloyd N.V.
