LONDON (Alliance News) - Shares in AIM-listed Nationwide Accident Repair Services PLC rose on Wednesday after the company agreed to be taken over by US private equity firm Carlyle Group in a GBP43.2 million deal, coming the same day that Nationwide said it has completed the acquisition of a bodyshop chain in Hampshire.
Carlyle, which will acquire Nationwide through the Canaveral Bidco Ltd vehicle, said it would pay 100 pence per share for Nationwide, a 45% premium to the volume-weighted average price of Nationwide shares in the three months before March 31. It is a 13% premium to the closing price of Nationwide shares of 88.5 pence on March 31.
Carlyle said Nationwide's independent directors have said they consider the offer to be fair and reasonable and have recommended shareholders accept the bid.
The US private equity house already owns breakdown service RAC and last year looked set to float the business on the stock exchange in a GBP2 billion deal. But Carlyle scrapped the planned RAC flotation in September, deciding instead to sell a stake in the business to Singapore sovereign wealth fund GIC.
The deal to buyl Nationwide outright comes after insurance technology and outsourcer Quindell PLC earlier this month sold its minority stake in Nationwide for GBP7.1 million. Quindell sold its 25% stake in the company at 65 pence per share.
"The board of Nationwide is pleased to announce that agreement has been reached with Carlyle on the terms of a recommended cash offer for Nationwide. This offer enables Nationwide shareholders to realise value today in cash for their shares at a significant premium to the recent historical share price and a meaningful premium to the company's share price immediately prior to the date of this announcement," said Nationwide Chairman Michael Marx.
Nationwide shares were up 8.1% to 95.6501 pence on Wednesday, one of the best performers in the AIM All-Share index.
In a separate statement on Wednesday, Nationwide said it has completed the acquisition of Seward Accident Repair Services Ltd, a Hampshire-based bodyshop chain, for GBP3.8 million in cash.
Nationwide said the deal would give it more coverage in the south of England and will expand its presence in the insurance, fleet and retail markets.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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