Private Equity Bid worth £888m Accepted By Brit Insurance
The sponsors of the England cricket team and the cricket ground of Oval has supported the takeover up to £888m by private equity buyers. The Apollo Management and CVC Capital partners have valued the shares of the company between £10.75 and £11per share, out of which £10.45 in cash, capital distribution of 30p and 25p as contingent value payment depending upon the company’s net assets at the end of the year
Earlier in June this year, Apollo and CVC had offered a £10 per share which was rejected and then again offered £10.75 per share one month later.
Brit has also announced that its premium has dropped by 8.5percent to £1.22bn during last nine months that completed on September 30.
Low insurance rates and weaker returns from invested premiums have caused the shares in all Lloyd’s of London insurers to drop down.
Beazley’s offer of £156 million for the rival Hardy has been dropped down.
Dane Douetil, Brit's chief executive revealed that results of the third quarter are almost similar to the first half of the year and the underwriting is still competitive.