Finland's Sampo makes $4.7 billion bid for Topdanmark

FILE PHOTO: Sampo Group logo is seen displayed in this illustration taken, May 3, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

OSLO (Reuters) -Finnish insurer Sampo has agreed to buy Topdanmark in an all-share deal that values the Danish rival at 33 billion crowns ($4.73 billion), the two companies said on Monday.

Sampo already owns 48.5% of the Danish property and casualty (P&C) insurer, according to LSEG data.

Based on Friday's closing share prices, the offer represents a 27% premium per share of Topdanmark, the companies said in a joint statement.

"By combining the businesses in a fully integrated Nordic operating platform, we can unlock growth and attractive synergies that will strengthen our position as a leading Danish P&C insurer," Sampo CEO Torbjorn Magnusson said.

The companies said they expect the acquisition to result in annual cost savings of 65 million euros ($69.5 million) for the merged group and a further 30 million in higher income per year.

Topdanmark said the proposed tie-up would give its owners the opportunity to take part in a well-diversified Sampo with strong growth perspectives.

"We find that the offer from Sampo represents attractive financial value for the shareholders of Topdanmark," the Danish group's Deputy Chair Jens Aalose said in the statement.

Sampo said its offer was its "best and final" bid and that it would not be improved.

($1 = 6.9694 Danish crowns)

($1 = 0.9347 euros)

(Reporting by Terje Solsvik, editing by Anna Ringstrom)