Belgian insurer Ageas SA has confirmed it is considering making a cash and share offer for Direct Line Insurance Group (LSE: DLG), sending shares soaring by over 22%.

The proposed offer, valued at 233 pence per share, represents a 43% premium to Direct Line’s closing price on Tuesday. The terms include 100 pence in cash and one new Ageas share for every 25.24047 Direct Line shares, valuing the company at around £3.1 billion.

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Ageas claims the combination would offer “compelling strategic and financial value” for both companies, highlighting potential cost savings and operational efficiencies. This comes after Bloomberg earlier reported that Direct Line had rejected an initial approach from Ageas.

Direct Line, with a market value of around £2.57 billion, was spun off from Royal Bank of Scotland in 2012. The company is set to welcome its new CEO, Adam Winslow, on March 1st.