After a few weeks of silence, a Wellington-based ASX-listed insurer is expected to raise its bid to acquire another New Zealand insurance company.
Suncorp has been at the centre of a takeover war with Canadian investment group Fairfax over Tower New Zealand for almost two months now. Now, the diversified financial group, led by
Michael Cameron, is said to be mulling over increasing its broader offer to NZ$1.40, in consideration of the Kiwi insurer’s worth of over NZ$200 million, The Australian reported.
The deal will see either buyer acquire some NZ$750 million of gross written premiums and a slice of the lucrative NZ life insurance market.
The Canadian financial giant offered to buy the company at NZ$1.17 per share, or NZ$197 million, in February. Only eight days later, this offer was countered by Suncorp’s
Vero.
Meanwhile, the review of Suncorp Australia’s life business has been put on the backburner until the bidding war reaches its conclusion, the report said.
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