South African life insurer Liberty Group has launched a takeover bid for investment holding firm Capital Alliance, offering Rand 3.1 billion, or 17.50 rand per share.
Liberty Group, which is also known as Liberty Life, says it can pay for Capital Alliance with cash and that the acquisition will boost its earnings and return on equity.
About 40 percent of Capital Alliance’s shareholders back the deal. South Africa’s Capital Alliance, whose main subsidiaries are life insurance and pension companies, said it would weigh the offer.