Allianz SE will terminate the legacy PIMCO M Unit Plan by purchasing all outstanding units for cash.
The insurer will pay at least €1.4 billion ($1.61 billion) to acquire units held by former employees. This transaction simplifies the capital structure of the Allianz asset management subsidiary.
The M Unit Plan granted options to PIMCO staff between 2008 and 2020. Current and former employees currently hold a 9.4% ownership stake in the firm.
Current employees may retain their units under a new arrangement until their employment concludes.
Separately, Jefferies analysts maintained a Neutral rating on Allianz stock. The firm kept its price target unchanged at €325.