Mutual & Federal Insurance Co.’s board will vote in favor of a takeover offer from majority-owner Old Mutual PLC, the South African short-term insurer said Monday.
London-based Old Mutual, which currently owns almost 74% of Mutual & Federal but will make an offer for the outstanding shares worth about GBP155 million, separately said it is progressing with its proposed acquisition.
Mutual & Federal said based on the opinions of a board subcommittee and JP Morgan Chase Bank, “the board is of the opinion that the terms of the offer … are fair.”
Old Mutual last week said it will issue new shares to increase its stake in Old Mutual to 100%.
