AWE shares surge at offer
SHARES in AWE have jumped after a Chinese state- owned energy giant made a new takeover bid for the Australian oil and gas group.
China Energy Reserve and Chemical Group, CERCG, is now offering 73c a share for AWE, three days after withdrawing a bid of 71c a share announced in November.
The new all- cash takeover offer made yesterday values AWE at approximately $ 463 million.
AWE shares closed 7c, or 10.6 per cent, higher at 73c yesterday – pushing past the 70c reached on December 4 and hitting their highest level since August, 2016.
CERCG said the two companies had been in unproductive discussions for almost two months, so now it was making its offer direct to shareholders. INSURANCE giant IAG has signed a reinsurance deal with three European businesses to share a portion of its premiums and expenses from next year.
Under the deal, to start in January, reinsurers Munich Re, Swiss Re and Hannover Re will receive a combined 12.5 per cent of IAG’s gross earned premium and will pay the same percentage of claims and expenses across its Australia, New Zealand and Thailand divisions.
The three agreements build on a similar, yet larger deal IAG signed with Warren Buffett’s Berkshire Hathaway more than two years ago.
IAG says the agreements will help reduce regulatory capital requirement by about $ 435 million over three years and reduce earnings volatility – with a portion of insurance risk effectively exchanged for a more stable fee income stream.