EXOR Launches $6.4 Bln All-cash Offer For PartnerRe

(RTTNews) - Italy's EXOR said Tuesday that it has offered to buy U.S.-based reinsurer PartnerRe Ltd. (PRE) for $6.4 billion in cash.

EXOR, which is controlled by the Agnelli family, is offering $130 cash for each share of PartnerRe, which represents 16% premium to the implied value per share of $112.53 for PartnerRe under the Amalgamation Agreement between PartnerRe and AXIS Capital Holdings Ltd. (AXS), based on the average of AXIS's closing prices for the ten days ending on April 13.

The EXOR proposal is fully financed. The acquisition will be funded through cash available on hand as well as a committed, investment-grade bridge facility and term loan to EXOR from Citibank, N.A., London Branch and Morgan Stanley Bank International Ltd. for up to $4.75 billion. It does not require a capital increase by EXOR nor a vote by its shareholders.

Assuming the full cooperation of the PartnerRe Board, EXOR expects to close the deal in 2015.