Sammo’s acquisition of Danish Topdanmark presents an opportunity for investors, according to Christopher Adams, a Kepler Cheuvreux analyst. The offer includes exchanging 1.25 newly issued Sammo A shares for each Topdanmark share, valuing each Topdanmark share at 366.38 Danish kroner or about 49 euros. The total valuation of Topdanmark’s shares is estimated at 33 billion Danish kroner or 4.4 billion euros.
Adams has reiterated his buy recommendation for Sampo’s stock and maintains the target price of EUR 46. With Sampo’s stock closing at 38.81 euros on Monday, the target price of 46 euros suggests a potential 18.5 percent increase in the stock’s value. The analyst believes that if the deal is successful, it would allow Sampo to integrate Topdanmark and achieve cost synergies. Additionally, the consolidation in the Nordic non-life insurance market would strengthen the potential for price increases.
The analyst’s positive outlook on Sampo’s stock is driven by the opportunities presented by the acquisition of Topdanmark and the potential for growth and cost savings in the Nordic insurance market. Adams sees the deal as a strategic move that could benefit Sampo’s business in the long term.
