ClearView Wealth (ASX:CVW) shares rose over 16% on Feb. 24 following the announcement of a $415 million takeover bid from Zurich Financial Services Australia.
Under the proposed scheme implementation deed, Zurich—a subsidiary of the Swiss insurance giant—offers a cash consideration of $0.65 per share.
The price represents a 26.4% premium over the 12-month volume-weighted average price and values the life insurance specialist at 1.2x its net asset value.
The ClearView board has unanimously recommended the proposal, with major shareholder Crescent Capital Partners—which controls 53% of the company—signalling its intent to vote in favour of the deal.
Chair Geoff Black noted that while the company's long-term outlook remains strong, the acquisition provides "certain value" and full liquidity for investors.
The deal also includes provisions for "ticking fees" if completion extends beyond Sept. 30, and allows for fully-franked dividends of up to $0.05 per share, potentially bringing the total value to $0.67 for eligible Australian investors.
The acquisition aims to integrate ClearView's "ClearChoice" product line into Zurich’s global portfolio.
Black described the two organisations as "highly-complementary brands," suggesting Zurich will serve as a stable custodian for the group's $413 million in-force premium book.
At the time reporting, ClearView Wealth's share price was $0.062.