Japan's Sompo To Acquire Endurance Specialty For About $6.30 Bln

(RTTNews) - Tokyo-based global insurance carrier Sompo Holdings, Inc agreed to acquire Endurance Specialty Holdings Ltd. (ENH), a Bermuda-based provider of property and casualty insurance and reinsurance, for US$93 per share in cash. The aggregate consideration is 637.5 billion yen or about US$6.304 billion.

In the Pre-Market, ENH is currently trading at $91.44, up $3.57 or 4.06%.

The offer price represents approximately a 40.3% premium to Endurance's closing share price on 3 October 2016 and approximately a 41.6% premium to the average share price over the last 3 months.

The acquisition has been approved by the Board of Directors of Endurance and is subject to Endurance shareholder approval at a shareholders' meeting.

Kengo Sakurada, President and CEO of SOMPO Holdings, Inc, said"Endurance brings strength in the primary insurance business in developed markets. Endurance also brings a highly experienced executive team led by one of the world's leading P&C CEOs in John Charman. Mr. Charman, and certain shareholders associated with Mr. Charman, representing in the aggregate approximately 4.9% of Endurance ordinary shares, have agreed to vote in favor of the proposed transaction."

The transaction is subject to the clearances and approvals of applicable regulatory authorities, as well as other customary closing conditions.

It is expected that the transaction will close before the end of SOMPO's current fiscal year end on 31 March 2017.