Shareholders could get a further 25 pence a share
Private equity firm Apollo has joined forces with CVC Capital Partners to pursue its £10.75-a-share offer for Lloyd’s insurer Brit.
Funds managed by Apollo Management VII have formed a consortium with funds advised by CVC. The consortium has now made an indicative proposal to acquire the entire issued and to-be-issued share capital of Brit.
In addition to £10.75 a share, the consortium also plans to grant shareholders a so-called contingent value right, under which they will receive up to a further 25 pence a share if Brit’s net tangible asset value at 31 December 2010, , after adjustment for certain agreed items, is greater than £10.75 a share.
Although the consortium's due diligence is reasonably advanced, according to Brit, the proposal remains subject to a number of pre-conditions, which may be waived by the consortium, including completion of outstanding due diligence and satisfactory discussions with regulators, which still need to be satisfied.
