Chesnara’s (LON:CSN) deal to buy Legal & General’s Dutch business added 7% to its market value as investors reckoned it was a canny bit of business.
John Deane, chief executive, explains that not only does it give it real scale in the Netherlands, it makes it a credible buyer for other assets that may become available in the country.
Chesnara’s aim is to be the least troublesome share in an investor’s portfolio, he adds, and deals like this make that ambition easier to achieve.
At €160mln, the business is also being bought at a large discount to its cash generation potential.
Chesnara now has close to £7bn of assets under management and is a significant player in all three of its core markets of the Netherlands, UK and Sweden.