SANTIAGO Shares of Chilean pension company AFP Cuprum CUP.SN jumped 41 percent on Tuesday, a day after U.S. insurer and asset manager Principal Financial Group Inc (PFG.N) agreed to buy Cuprum in a deal that valued the company at a roughly 50 percent premium over its prior closing share price.
Shares of two other Chilean pension fund managers, Habitat HAB.SN and Provida PVD.SN, also surged in morning trade. Habitat soared 6 percent, and Provida rose 4.51 percent.
"The purchase price of Cuprum implies ... roughly a 52 percent premium to the company's current market value," brokerage IM Trust said in a note to clients. "If we consider that similar players in the local pension fund industry are subject to the same takeover valuations going forward, the relative valuations (of Habitat and Provida) could be subject to revaluation."
Principal Financial on Monday said it agreed to buy Cuprum for about $1.51 billion.
Chile's private pension fund system has attracted investor attention due to high returns and robust local economic growth.
Medellin, Colombia-based Grupo Sura paid more than $3.5 billion last year for the regional assets of ING Groep NV (ING.AS), including Chilean pension fund AFP Capital
(Reporting by Santiago newsroom; Writing by Alexandra Ulmer; Editing by Leslie Adler)