Harleysville policyholders and shareholders approve merger with Nationwide
April 25 2012 - 8:01AM
Business Wire
Harleysville Mutual Insurance Company and Harleysville Group
Inc. (NASDAQ:HGIC) today announced that their policyholders and
shareholders, respectively, have voted to approve the adoption of
the proposed merger with Nationwide Mutual Insurance Company.
“We very much appreciate the overwhelming endorsement of both
our policyholders and shareholders in approving the merger with
Nationwide,” commented Michael L. Browne, Harleysville’s president
and chief executive officer. “The combination of Harleysville and
Nationwide represents a strong strategic business fit that makes
sense for both organizations. As partners within the Nationwide
family of companies, Harleysville and Allied Insurance will
establish a national independent agency distribution network,
bringing together a wealth of talent and expertise in the
marketplace.”
At a special meeting of Harleysville Mutual policyholders, 14.1
percent of eligible votes were cast by policyholders as of the
record date of March 1, 2012, and 87.4 percent of the votes were
cast in favor of the adoption of the merger agreement. At a special
meeting of Harleysville Group shareholders, 89.9 percent of
eligible votes were cast by shareholders as of the record date of
February 29, 2012, and 99.8 percent of the votes were cast in favor
of the adoption of the merger agreement.
The Pennsylvania Insurance Department already has approved the
merger. In addition, Nationwide Mutual policyholders have voted in
favor of the merger. Regulatory approval is still required in
certain other states. The transaction is expected to close sometime
in the second quarter.
Under the terms of the merger agreement, Harleysville Mutual
policyholders will become policyholders and members of Nationwide
Mutual, and Nationwide will acquire all of the publicly held shares
of common stock of Harleysville Group for $60.00 per share in
cash.
Harleysville Insurance is a leading super-regional provider of
insurance products and services for small and mid-sized businesses,
as well as for individuals, and ranks among the top 60 U.S.
property/casualty insurance groups based on net written premiums.
As a Trusted Choice® company partner, Harleysville distributes its
products exclusively through a network of independent agents
primarily across 32 states. Harleysville is ranked in the most
recent InformationWeek 500, the publication’s annual listing of the
most innovative information technology organizations in the U.S.,
and has been included on the list in each of the last six years.
Harleysville Mutual Insurance Company owns approximately 54 percent
of Harleysville Group Inc. (NASDAQ: HGIC), a publicly traded
holding company for six regional property/casualty insurance
companies collectively rated A (Excellent) by A.M. Best Company.
Harleysville Group is listed on the NASDAQ Global Select Market,
which is comprised of the top third of all NASDAQ member companies
and has the highest initial listing standards of any exchange in
the world based on financial and liquidity requirements. Further
information can be found on the company’s website at
www.harleysvillegroup.com.
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