Sampo’s acquisition of Danish insurance company Topdanmark could present investors with significant opportunities, according to Kepler Cheuvreux analyst Christopher Adams. The proposed deal involves exchanging 1.25 newly issued Sampo A shares for each Topdanmark share, valuing each Topdanmark share at 366.38 Danish kroner or about 49 euros. This valuation places Topdanmark’s outstanding share capital at a total of 33 billion Danish kroner or 4.4 billion euros.
Adams maintains his buy recommendation for Sampo’s stock and reiterates his target price of 46 euros per share. With Sampo’s share closing at 38.81 euros on Monday, this target price suggests a potential increase of 18.5%. The analyst believes that if the deal goes through, Sampo could benefit from integrating Topdanmark and achieving cost synergies.
Furthermore, the acquisition would lead to further consolidation in the Nordic non-life insurance market, potentially strengthening the ability to raise prices. Adams sees this as a positive development that could contribute to the growth and success of Sampo in the region.
