(Alliance News) - Insurer Charles Taylor PLC has agreed to a GBP261 million takeover deal from US private equity firm Lovell Minnick Partners LLC.
Lovell Minnick invests in the financial services industry, with over 50 portfolio firms and USD3.3 billion of assets under management. It has offices in Philadelphia, New York and Los Angeles.
It has offered 315 pence per Charles Taylor share, which has been accepted, and the board of Charles Taylor has recommended shareholders accept the bid. Shares were 37% higher on Thursday morning at 322.10p.
The offer price, Charles Taylor noted, is a 34% premium to its closing price in London on Wednesday, and a 41% premium to its six-month volume-weighted average price.
Charles Taylor shareholders also will be entitled to receive the 3.65p dividend declared by the company last week, which will be paid in November.
Charles Taylor Chair Edward Creasy commented: "The Charles Taylor board is confident in the quality and long term prospects of the Charles Taylor group, but believes this offer recognises these factors and represents a good opportunity for shareholders to realise value for their investment at an attractive premium.
"As a private company with Lovell Minnick's backing, I believe Charles Taylor will continue to capitalise on opportunities in its markets and ensure the future success of Charles Taylor for employees, partners and clients."
Spencer Hoffman and Jason Barg, partners at Lovell Minnick, added: "We are delighted to invest in Charles Taylor and to support David and the management team in continuing the development of the business they have built over the past years.
"Charles Taylor is a high-quality business, operating in a sector Lovell Minnick has a strong track record of investing in and we believe partnering with Lovell Minnick to pursue a shared vision to grow the platform will provide benefit to clients, employees and partners."
Earlier in September, Charles Taylor reported a GBP2.1 million pretax loss for the first half of 2019, improved from GBP2.5 million a year before, with the adjusted figure rising 26% to a GBP7.3 million pretax profit. Revenue was up 15% to GBP141.7 million.