Barbican Group launches takeover bid for Omega Insurance

LONDON—Barbican Group Holdings Ltd. has launched a takeover bid for insurer and reinsurer Omega Insurance Holdings Ltd.

In an offer announced Thursday, London-based Barbican proposes to be acquired by Hamilton, Bermuda-based Omega in an all-share transaction to establish a combined company. The new company then would offer existing Omega shareholders 84 pence per share ($1.33) for up to 60 million shares.

In a statement announcing the offer, Barbican said its proposal would provide Omega shareholders the opportunity to participate in “an enlarged group” that would benefit from having an “experienced, Lloyd's-focused management team” as well as cost and capital efficiencies from combining two Lloyd's entities and the “100% aligned capacity at Barbican's syndicate 1955, which has no third-party capital.”

Omega had no immediate reaction.

Previous offers

Barbican said in June that it had approached Omega about a possible merger.

The Barbican move comes after an offer made last week by Canopius Group Ltd. to acquire Omega for 83 pence ($1.31) per share.

The Canopius offer came one day after consortium Haverford (Bermuda) Ltd., led by Mark Byrne, co-founder of Luxembourg-based Flagstone Reinsurance Holdings S.A., offered to buy about 25% of Omega for up to 83 pence per share. Omega announced last week that it had reached agreement with Haverford on the partial cash offer.

Canopius made an unsolicited offer for Omega, which operates syndicate 958 at Lloyd's of London, in January.