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Featured Company News - AXIS Capital to Complete Novae Acquisition; Set to Create Industry-Leading Specialty Insurer

LONDON, UK / ACCESSWIRE / September 28, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for AXIS Capital Holdings Ltd (NYSE: AXS) ("AXIS"), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=AXS. The Company announced on September 26, 2017, that it will complete the acquisition of Novae Group Plc ("Novae"). The Company initially consulted with the European Commission (EC), and in accordance with applicable regulations, it will execute the acquisition in two phases, beginning with the acquisition of Novae shares, expected to occur on October 02, 2017. The acquisition will be followed by management control and integration of the combined business upon receipt of the final EC's approval, expected to be held on October 18, 2017. AXIS' Chief Executive Officer (CEO), Albert Benchimol, initially stated on August 29, 2017, that the acquisition of Novae, which covers property, casualty, marine, aviation, and political risk, would create an approximately $2 billion player in the London Insurance market. For immediate access to our complimentary reports, including today's coverage, register for free now at:

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At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on AXS. Go directly to your stock of interest and access today's free coverage at:

http://protraderdaily.com/optin/?symbol=AXS

The Announcement

AXIS and Novae, pursuant to the Scheme of Arrangement signed on July 05, 2017, would acquire all the shares of Novae to form a combined business. Subsequently, on August 29, 2017, AXIS announced that Novae's shareholders approved the Scheme of Arrangement for the acquisition. The transaction has received regulatory approval from the Prudential Regulation Authority, the Financial Conduct Authority, Lloyd's of London, and the Bermuda Monetary Authority. AXIS currently operates in the United States, Europe, Singapore, the Middle-East, Canada, and Latin America.

The deal has no termination fee, implying confidence from both the Companies that a counterbid was an unlikely situation. However, a Novae shareholder, Neptune, initially stated that the offer undervalued the Company and a fair offer would be at least 5% or 6% higher than the AXIS bid. Neptune, which holds approximately 16% of Novae, said that AXIS placed the bid after the declining valuation of Novae for the last nine months.

The Final Offer

On August 24, 2017, AXIS announced that it made a full and final offer of 715 pence per share for Novae, valuing the entire share capital of Novae at about £477.6 million. The acquisition was viewed as being fully aligned with the Company's international specialty insurance growth strategy and would combine two highly complementary businesses. The Company believes the acquisition would create significant value for AXIS' shareholders with limited execution risk.

On August 29, 2017, Novae's shareholders approved the agreement with about 99.97% of the shareholder votes cast in the favor of the proposal. On the basis of 2016 actual results, the combination overall represents a global specialty insurer with gross written premiums in the excess of $6 billion. The acquisition, according to the Company, would significantly scale up its capabilities and enable it to better serve clients and brokers. Matthew Fosh, Novae's CEO, stated that the combined Company would be well-positioned to compete in the international specialty insurance marketplace.

Last Close Stock Review

At the closing bell, on Wednesday, September 27, 2017, AXIS Capital's stock rose 1.08%, ending the trading session at $57.05. A total volume of 836.90 thousand shares have exchanged hands, which was higher than the 3-month average volume of 535.29 thousand shares. The Company's stock price advanced 4.12% in the previous twelve months. The stock is trading at a PE ratio of 12.68 and has a dividend yield of 2.66%. The stock currently has a market cap of $4.80 billion.

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