Charles Taylor share price jumps on £261m takeover deal
Private equity house Lovell Minnick has said it will take Charles Taylor, the listed insurance company, private in a £261m deal.
Charles Taylor’s board said they believe the offer is “compelling” and will be recommending it to shareholders at a meeting in November.
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The announcement sent shares bounding by 37 per cent to 322p somewhat above the 315p offer price.
It is a 34 per cent premium to the closing price last night, and nearly 41 per cent more than the weighted average over six months.
Charles Taylor chief executive David Marock said the company owed its achievements to the staff, innovation and client service.
“I am confident that this acquisition by Lovell Minnick, a highly regarded investor with experience in our markets, will provide Charles Taylor with the opportunity to continue to deliver on its existing growth strategy,” he said.
It comes just over a week since the business showed a 15 per cent rise in revenue to £141.7m in the first six months of the year, and a 26 per cent jump in adjusted pre-tax profit.
The company focused on expanding its claims services and insurance technology businesses, with the latter nearly breaking even.
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Investors owning over 75 per cent of the shares need to vote in favour of the deal at a meeting in November. The directors, who hold 1.16 per cent of the shares, have already said they will back the deal.
It also needs regulatory approval.