(February 21 – 09:50 ET) – Canada Brokerlink Inc. has received a “white knight” takeover offer from a company controlled by Allianz of Canada Inc. The $1.20 per share cash offer beats an earlier $1.02 hostile bid from Equisure Financial Network Inc.
Allianz will mail its takeover circular by February 28, and the offer expires 17:00 ET on March 21. Brokerlink’s board has received a favourable opinion on the proposal from Newcrest Capital Inc., its financial advisor.
Brokerlink’s board has agreed unanimously to support the new offer and to withdraw its earlier recommendation in favour of a proposed deal for Vector Intermediaries Inc. The new offer is conditional on the rejection of that deal. Brokerlink’s shareholders will vote on the Vector deal at a special meeting on February 25.
Allianz and the Dominion of Canada General Insurance Co. have entered a lock-up agreement for Dominion’s 16% of Brokerlink. Brokerlink’s board has also agreed to a $850,000 breakup fee if it wants to withdraw its recommendation. “The backing of an international organization like Allianz provides the financial strength to Brokerlink for future growth opportunities in the distribution of insurance services,” says Charles Loewen, chair and interim CEO for Brokerlink.
“This acquisition will provide Allianz with a strong investment in the future of the Canadian insurance market”, says Allianz president Christian Cassebaum.
-IE Staff