PARIS (Reuters) – Covea, Scor’s largest shareholder, agreed to an orderly exit from Scor on Thursday as conflicting insurance groups reach agreement over a frustrated takeover attempt and ensuing legal disputes .
“Covea and Scor are convinced that this approach will open a new period of confidence, in the interest of both parties, their stakeholders, and more generally the insurance sector in France and the place of Paris”, have- they stated in a joint statement. .
As part of the agreement, Covea, which owns 8.45% of Scor, agreed to give Scor a call option on its shares at an exercise price of 28 euros per share for five years, while also committing not to buy Scor shares for seven years. Scor shares closed at 26.1 euros on Thursday.
Covea will also pay Scor € 20 million pre-tax and both parties waive any legal action against each other. A London lawsuit against Barclays, Covea’s adviser, was due to start next week.
The transactional agreement will apply to the current directors of Covea and Scor as well as to future directors over the next seven years.
In January 2019, Covea abandoned its plan to buy Scor after strong opposition from the reinsurer. The buyout plan had led to litigation between the two companies at the time.