Canopius readies formal offer to buy Omega Insurance

LONDON—Canopius Group Ltd. said Tuesday that it expects to complete its due diligence on Omega Insurance Holdings Ltd. by Friday and make a formal offer to buy the insurer and reinsurer shortly thereafter.

It is one of three insurers attempting to buy the Lloyd’s of London syndicate operator.

Guernsey-based Canopius made an unsolicited offer for Hamilton, Bermuda-based Omega in January.

Earlier this month, Canopius began due diligence after proposing to buy Omega for 83 pence ($1.28) per share.

That proposal followed a few days after Haverford (Bermuda) Ltd., led by Flagstone Reinsurance S.A. co-founder Mark Byrne, offered 83 pence per share for a 25% stake in Omega.

Last week, London-based Barbican Group Holdings Ltd. launched an offer to take over Omega for 84 pence ($1.30) per share.

In a statement Tuesday, Canopius Chairman Michael Watson said a “significant number” of institutional investors in Omega had expressed interest in a full cash bid.

“We intend to complete our due diligence this week and expect to be in a position to table our bid very soon thereafter,” he said.