Chinese conglomerate Fosun International Ltd. (00656.HK) will acquire Meadowbrook Insurance Group for US$433 million to enter the US property and casualty insurance market.
The cash deal of US$8.65 per share represents a 24 percent premium over Meadowbrook stock’s closing price on Dec. 29, Reuters reported, citing statements from the companies.
Shares of Meadowbrook, a specialty commercial insurance underwriter and insurance administration services company, were up 14 percent on Tuesday.
“This transaction allows Fosun to establish a presence in the important US P&C market,” Fosun chairman Guo Guangchang said.
Guo, who Forbes estimates has a net worth of about US$4.3 billion, is also involved in a takeover bid for French holiday operator Club Mediterranee with Italian tycoon Andrea Bonom, according to the news agency.
Fosun, which has a market capitalization of about US$9.10 billion, is into insurance, industrial operations, investment and asset management.
The transaction, which has been approved by the boards of both the companies, is expected to close in the second half of 2015, the report said.
Meadowbrook will continue to maintain its headquarters in Southfield, Michigan, and will operate under the Meadowbrook brand name.
KPMG and Willis Capital Markets & Advisory are the financial advisers to Fosun and Meadowbrook respectively.
DLA Piper LLP is the legal advisor to Fosun while Sidley Austin LLP advised Meadowbrook on the deal.
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