July 6, 2009 (FinancialWire) — PartnerRe (NYSE: PRE) said it has entered into definitive agreements to acquire Paris Re, a Swiss-based reinsurer. Under the deal, PartnerRe will exchange 0.30 of its common shares for each Paris Re common share outstanding in a stock-for-stock transaction.
According to PartnerRe, the acquisition is expected to add $1.7 billion in new shareholders’ equity to the company.
Paris Re is expected to distribute $310 million in cash as a return of capital to its shareholders, leading to a total transaction value of around $2 billion.
Bermuda-based PartnerRe provides multi-line reinsurance to insurance companies. The company also offers alternative risk products that include weather and credit protection to financial, industrial and service companies.
FinancialWire(tm) is a fully independent, proprietary news wire service. FinancialWire(tm) is not a press release service, and receives no compensation for its news, opinions or distributions. Further disclosure is at the FinancialWire(tm) web site (http://www.financialwire.net/disclosures.php). Contact FinancialWire(tm) directly via inquiries@financialwire.net.
Free annual reports for companies mentioned in the news are available through the Free Annual Reports Service (http://investrend.ar.wilink.com/?level=279).
