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ASX listed health insurer nib Holdings Ltd (ASX:NHF) has made a $140 million takeover bid for fellow health insurer GMHBA.
However, nib says the board of GMHBA has formally rejected its offer and has refused to further engage with the company.
Because of this nib felt it was necessary to make the offer public so to ensure the true owners of GMHBA, its members, have an understanding of the value of their interest in GMHBA and the opportunity.
For nib Holdings proposal to be accepted, it expects that the board of GMHBA must allow a vote on the offer by GMHBA members.
If successful the combined company would have 9 per cent market share with approximately 500,000 policyholders and premium revenue of $1.2 billion.
nib says if the transaction goes through, GMHBA members will also receive a tax free payment of as much as $6,500.
nib Holdings reported earnings of $61.52 million for the year to June 30, 2010.
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