Nuremberg Insurance before takeover: Investors warn of loss of value!

Nuremberg Insurance before takeover: Investors warn of loss of value!

Nürnberger Versicherung (NBG6) is facing a potential takeover by the Austrian Vienna Insurance Group (VIG). This reports tradingview.com. However, the activist investor 7Square expresses concerns that the takeover could be carried out under value and therefore calls in a letter to the board of Nürnberger Beteiligungs-AG to end the exclusive negotiations with VIG and initiate a new sales process.

7Square describes the intended sale to VIG as “detrimental and value-destroying” for shareholders. The valuation of Nürnberger Versicherung is conservatively estimated at 1.4 to 1.6 billion euros, while the current market valuation of Nürnberger shares is around 700 million euros. However, the Nuremberg board of directors has already announced that it will justify the provisional award to VIG by pointing to strategic options, financial indicators and commitments to secure the location and maintain the brand.

Strategic discussions and due diligence

The negotiations between Nürnberger Beteiligungs-AG and VIG are characterized by a due diligence review. Both companies are in discussions about strategic cooperation, with VIG planning to acquire a controlling majority stake in Nürnberger. Nürnberger Versicherung will not only open up to VIG, but also to other strategic investors, including the Versicherungskammer Bayern and Provinzial, who have expressed interest in the life insurance division or even in the entire Nürnberger Group. However, the outcome of these examinations and negotiations remains open.

The Nuremberger board also pointed out during the general meeting in May that the strategy of independence should be examined in order to evaluate the options for action for the future of the company. The goal is to ensure that Nürnberger Versicherung is future-proof and profitable. According to 7Square, there are concerns about VIG's ability as majority owner to implement necessary restructuring measures.

Outlook on the takeover

Details about VIG's exact offer are not yet known, but it should be noted that the Nuremberg share is listed in the over-the-counter Scale segment. This means that VIG does not have to make a mandatory offer to other shareholders. The latest news suggests that the decision on VIG's possible participation is expected to be made in the fourth quarter. The Bavarian Insurance Chamber has already signaled interest in further developing and maintaining the identity of Nürnberger Versicherung, which makes the negotiations even more complex.

Overall, the future of Nürnberger Versicherung remains exciting and the coming decisions will be important for both shareholders and the entire industry. The nervousness among investors is palpable as negotiations between Nuremberg and VIG continue.