(Reuters) – Covea, the major shareholder in Scor SE, agreed on Thursday to an orderly withdrawal from Scor when the warring insurance groups reached an agreement on a frustrated takeover attempt and subsequent legal disputes.
"Covea and Scor fully believe that this course of action will open a new period of trust, in the interests of both parties, their stakeholders and more generally the insurance sector in France and the Paris marketplace," they said in a joint statement.
According to the agreement, Covea, which owns 8.45% of Scor, agreed to give Scor a call option on its shares at an exercise price of € 28 ($ 34) per share for five years, while also agreeing to not to buy shares in Scor for seven years. Score shares closed at € 26.1
Covea will also pay Scor EUR 20 million before tax and the two sides will abandon all legal action against each other. A London trial against Barclays, Covea's adviser, would begin next week.
The Settlement Agreement will apply to the current managers of Covea and Scor as well as to future managers during the next seven-year period.
I In January 2019, Covea abandoned plans to buy Scor after fierce opposition from the reinsurer. The takeover plan had at that time led to legal disputes between the two companies.