Ageas decides against firm offer to acquire Direct Line after rejections

Ageas SA/NV has stated that following the rejection of the two recent attempts to engage with the Board of Directors of Direct Line Insurance Group plc, it will not make an offer for the firm.

Brussels-headquartered insurer Ageas was not able to identify additional elements based on publicly available information that would justify significant adjustments to the terms of its possible offer. Therefore, consistent with its financial discipline, has decided not to make a Firm Offer for the insurer.

On 19th January 2024, Ageas provided the Board of Direct Line with an initial possible offer proposal to acquire the entire issued and to be issued share capital of Direct Line. The terms of the Initial Possible Offer were improved on 9th March 2024 and set out in an announcement on 13th March 2024. Ageas believes that the proposal, on these terms, would have created significant value for both groups of shareholders and other stakeholders.

Throughout the entire process, Ageas stated that it has always sought engagement with Direct Line’s Board. The company added that “it regrets that it has not been able to work collaboratively together with the Board of Directors of Direct Line towards a recommended Firm Offer.”

Ageas continues to believe in the underlying attractiveness and future opportunities of the UK personal lines sector and the role of Ageas UK in this market, underpinned by its successful turnaround over the last few years. Ageas UK will continue to execute its focused personal lines insurance strategy alongside its valued distribution partners.

Hans De Cuyper, Chief Executive Officer, Ageas, said: “We had hoped to reach agreement on a jointly recommended Firm Offer together with the Direct Line Board. However, I am convinced that given the circumstances we took the right decision not to make an offer, staying true to who we are and what we stand for in terms of maintaining a friendly approach and respecting our financial discipline. I sincerely want to thank our employees and advisors who delivered outstanding performance exploring this opportunity, and our investors for their continued trust in our company.”

Linklaters LLP is acting as legal adviser to Ageas meanwhile, Deutsche Bank AG, acting through its London branch was the acting as a financial adviser.

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