Oval chief executive Peter Blanc says he wants to create a “liquidity event” for minority shareholders
Oval chief executive Peter Blanc said a buyout of minority shareholders was on his agenda.
Oval has a number of shareholders who sold their business to the consolidator and were rewarded with shares in the group.
The deals were done prior to 2009 when a flotation was on the cards. However, the financial crisis and post environment of low economic growth has meant plans for an exit route have been frozen.
And that has left those shareholders holding onto shares which they cannot convert into cash.
Speaking to Insurance Times, Blanc said: “Debt-wise we stopped just in time in my view. We called a halt in 2008 when the world started to end just a bit. By the end of this year, we’ll have net senior debt of 1.5 to 2 times EBITDA which in the grand scheme of things is almost insignificant.
“We would have debt where is helpful to the business. If I had my way it would be a nice thing to do to acquire a big slice of those minority shareholders. Its good for two things: it would value enhancing for the rest of the shareholder group and it gives an option of a liquidity event for shareholders where they need a liquidity event.
“We’ve got some shareholders who have been with the company quite a long while, and quite frankly they probably weren’t still expecting to be with the company now.”
One shareholder who had previously expressed his concern at being left with uncoverted shares was Philip Bland, who sold his business Bland Bankart to Oval in 2004.
Blanc said: “I’ve already met with Philip. He’s a lovely chap, we’ve had a good discussion. He’s onboard with the strategy, if I can create an opportunity. The reality is the Oval shares are at their lowest ever ebb in terms of value but I think we’re on an upwards trajectory.”
Read the full interview with Peter Blanc on www.insurancetimes.co.uk tomorrow (Wednesday).
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