Catlin Group Confirms Receipt Of Acquisition Offer From XL Group

(RTTNews) - Noting the recent press speculation, Catlin Group Ltd. (CGL.L) confirms that it has received an approach from Ireland-based XL Group plc (XL) for the possible acquisition of Catlin for consideration of 410 pence in cash and 0.130 shares of XL for each Catlin common share.

The indicative offer from XL values each Catlin share at 699 pence, based on the XL share closing price of $35.01 on Tuesday.

Under the terms of the Possible Offer, Catlin shareholders would not receive a final dividend for the year ended December 31, 2014.

A combination of XL and Catlin would create a leading player in property and casualty insurance and reinsurance and expand opportunities for the combined underwriting team in the global marketplace.

Catlin noted that discussions are currently ongoing between both parties and the final terms of any possible offer are subject to the completion of mutual due diligence. A further announcement will be made in due course.

XL had earlier in the day confirmed that it is engaged in preliminary discussions with Catlin regarding a potential transaction to acquire the company and form a combined entity.