Baloise takes over Pax plant

Through Basler Leben AG, Baloise is acquiring around 70 percent of the share capital and voting rights from the majority shareholders Pax Holding (cooperative), Pax, Schweizerische Lebensversicherungs-Gesellschaft AG and Nürnberger Lebensversicherung AG.

For the approximately 30 percent in free float, Baloise published the pre-announcement for a public takeover offer at a price of CHF 1,600 per share (subject to dilution effects) on January 6, 2017. The price is thus 18.6 percent above the volume-weighted average price of the last 60 trading days, writes Pax Anlage in a statement.

In total, the insurer is investing up to CHF 288 million in real estate, its most profitable asset class in the negative interest rate environment, according to Baloise. The Pax Group will receive a total of CHF 166 million from the sale of the majority stake.

Pax portfolio with a market value of CHF 151.5 million

Pax Anlage AG has a portfolio of properties with a diversified mix of uses and attractive returns.  At the end of the first half of 2016, the intrinsic value of the company was CHF 293 million. The company had restructured itself and planned to build up a real estate portfolio in the amount of CHF 700 million in the medium term. The market value of the portfolio properties (incl. assets under construction) had been reported by the company at CHF 151.5 million as of the end of June 2016.

Basler Leben AG will not take over the administrative business of Pax Anlage, which is included in Pax Verwaltungen AG. This is to be spun off to Pax Versicherung prior to the closing of the purchase agreements, informs Pax Anlage.

Among other things, the transaction is still subject to regulatory approvals and is expected to be completed in the first half of 2017.