Swiss Re close to 25% stake sale to SoftBank

Swiss Re is reportedly close to sealing a deal which will see Japanese conglomerate SoftBank acquiring a 25 percent stake in the reinsurer, according to a March 28 Bloomberg News report citing "people familiar with the matter".

According to the rumours, SoftBank is considering paying a price of about CHF100 to CHF105 per share. At CHF105 apiece, the deal would represent a 16 percent premium over Swiss Re shares’ closing price on Feb. 7, the day before the company confirmed a Wall Street Journal report that it was in talks, and value the stake at about $9.6 billion.

In February 2018, Swiss Re CEO Christian Mumenthaler suggested that a SoftBank deal could benefit Swiss Re in terms of research and development and technology as SoftBank could contribute to strengthening Swiss Re’s capabilities in these areas.

Moody’s had earlier said that Softbank’s communication and technology expertise and network of hi-tech investments would give Swiss Re a competitive advantage as the re/insurance sector adapts to transformational technologies that will over time test its business model.

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