NU Online News Service, March 28, 11:34 p.m. EDT
American International Group Inc.'s general insurance subsidiary Chartis says it will own more than 98 percent of Japan insurer Fuji Fire and Marine Insurance Co. after acquiring more than 305 million shares.
AIG already had a 54.66 percent equity stake in Fuji Fire and Marine.
The cash tender offer was made by Chartis' wholly owned subsidiary, Chartis Japan Capital Co. LLC, for all outstanding common shares and stock acquisition rights of Fuji Fire and Marine that Chartis did not already own as majority shareholder.
The tender-offer period expired on March 24, and the more than 305 million shares were tendered at an offer price of ¥146 per share (U.S. $1.79 at the current exchange rate).
AIG says that upon settlement on March 30, Chartis Japan will have an additional 44 percent of Fuji Fire and Marine shares on top of its existing stake.
Chartis intends to ultimately acquire the remaining minority shares it does not own, AIG says.
At that time Fuji Fire and Marine will become a wholly owned subsidiary of Chartis.
Chartis expects that Fuji Fire and Marine will continue to operate under the Fuji Fire and Marine brand, AIG notes.
"By enhancing the operational and financial capabilities of both companies, we will be able to accelerate the delivery of innovative products and services that anticipate the evolving needs of our customers," says Jose A. Hernandez, CEO of Chartis Far East Holdings K.K., in a statement "This transaction will benefit all of our stakeholders, including our employees and agents, and we look forward to a successful, long-term future together in the Japanese marketplace."
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