After receiving an unsolicited acquisition offer from U.S. domiciled private multi-asset alternative investment firm, Bain Capital Private Equity, LP and its affiliates, UK insurer esure Group is considering a possible deal.
According to a recent announcement, the Board of esure Group notes the recent positive movement in the company’s share price as a result of the bid, and confirms that “it is in the advanced stages of discussing a possible offer for the entire issued and to be issued share capital of the Company by Bain Capital.”
esure has revealed that after discussions and a period of due diligence, Bain Capital has now submitted a proposal to acquire all of the issued and to be issued shares of esure at 280 pence per share, in cash, which values the UK insurance company’s equity at just under £1.2 billion.
The UK insurer reports that the proposal represents a premium of approximately 37% to the closing share price of 204 pence on 10/08/2018; a premium of approximately 40% to the one month volume weighted average price of 199 pence per esure share to 10/08/2018; and, a premium of approximately 29% to the three month volume weighted average price of 216 pence per esure share to 10/08/2018.
It’s important to note that there is no certainty that an offer will be made for esure by Bain Capital, and that Bain Capital now has until 5pm, September 10th, 2018, to either announce a firm intention to acquire esure, or announce that it does not intend to make an offer.
The company said this morning (14th August) that the Board of esure has now reached agreement with Blue (BC) Bidco Limited, a wholly owned subsidiary of investment funds under the management of Bain Capital Private Equity (Europe) LLP, on the terms of an all cash offer for the entire issued and to be issued ordinary share capital of esure Group plc.
As a result, Bidco (the Bain Capital entity) has announced its “firm intention to make an offer for esure” today.
Sir Peter Wood, Chairman of esure, commented this morning, “I’m pleased to be announcing the Proposed Acquisition today, because it is a great outcome for shareholders, for the company, and for customers. Since its IPO in 2013, esure has grown to nearly 2.5 million in-force policies, delivered more than £800 million of annual gross written premiums, and returned just under £300 million to shareholders in dividends as well as the considerable value delivered to shareholders through the demerger of GoCompare.”
