Giles has agreed to buy fellow broking group CBG for 32p a share.
The deal values Manchester-based CBG, which is listed on the London Stock Exchange’s AIM market, at £5.1m. CBG’s board has recommended Giles’ offer to its shareholders.
The company will delist on successful completion of the deal.
Insurance Times revealed last month that Giles had run the slide-rule over CBG with a view to buying the broker. CBG later confirmed the approach.
Giles says it has already received letters of intent and firm undertakings to accept the offer from 50.8% of CBG’s shareholders. The company has set the acceptance threshold at 90%.
"We see CBG as a strong strategic fit with the existing Giles business with significant opportunities for both businesses to grow and develop together and to leverage from a shared scale and market presence,” said Giles chief executive Chris Giles in a statement.
“The removal of the regulatory burden of being a listed company will allow the CBG team to focus on continuing to develop the business, and improve its operational performance through the infrastructure and operational efficiencies of Giles. The opportunity to expand in a core region is an exciting prospect for Giles and we are committed to exploring the opportunities ahead for both businesses."
CBG chairman Robin Slinger added: "CBG is pleased to announce that it will be recommending Giles' offer for 32p per share to investors for consideration. The opportunity to become part of the Giles operation will inevitably provide significant growth potential for CBG in the coming years."
CBG has 120 employees. In addition to its Manchester headquarters it has offices in London and Blackpool.
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