Reuters: Private Equity: Talanx likely to announce IPO in late May -sources

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Talanx likely to announce IPO in late May -sources May 4th 2012, 15:09 FRANKFURT | Fri May 4, 2012 11:09am EDT FRANKFURT May 4 (Reuters) - Germany's third-biggest insurer Talanx is likely to officially announce in late May its plan to float on the stock exchange, two sources close to the transaction said. "Internally, all lights are on green for the Talanx IPO, the intention to float is likely to be published in the last week of May," one of the sources said, adding that the final decision on the initial public offering or IPO worth almost 1 billion euros ($1.3 billion) depended on market conditions. Talanx declined to comment. The insurer is aiming to list 25-30 percent of its shares four weeks later in a deal that could value it at about 4 billion euros, the sources said. This would make it a candidate for inclusion in Germany's midcap index MDax. Talanx is hoping that investors value it in line peers like Allianz which trades at 80 percent of its book value. However, investors will also look for a so-called IPO discount of about 10 percent, the sources said. The book value of Talanx shareholder's equity stood at 5.421 billion euros at the end of 2011. In the IPO, Japanese insurer Meiji Yasuda Life would also exchange convertible bonds worth 300 million euros into shares, meaning Talanx would need to raise only 600-700 million euros on the market, bankers said. Talanx has appointed Deutsche Bank, JP Morgan and Citi to organise its listing along with banks like Barclays and HSBC, s ources said. ($1 = 0.7603 euros) (Reporting by Arno Schuetze, Alexander Hübner and Jonathan Gould) Link this Share this Digg this Email Reprints

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