UK Insurer Hastings has announced it has agreed a deal to be taken over by its largest shareholder in a deal that values the company at £1.66bn.
The group’s independent directors and the directors of Dorset Bidco Ltd – a consortium comprising Sampo Oyj (Sampo) and Rand Merchant Investment Holdings Limited (RMI) have agreed on a deal that offers 250 pence a share to Hastings’ investors, as well as an interim dividend of 4.5 pence a share.
The offer represents a 37.5% premium on Hastings’ average share price for the three month period to the end of July.
The announcement also comes as Hastings reported a pre-tax profit of £63.5 million, up from £46.m for the six months ended 30 June 2020.
It also reported that net revenues increased to £392.7m up from £370.3m the previous year.
Toby van der Meer, Hastings CEO, said: “We have announced this morning that the Group’s Independent directors and the directors of Dorset Bidco Limited, a consortium comprising Sampo Oyj and Rand Merchant Investment Holdings Limited (‘RMI’), have reached agreement on the terms of a recommended cash offer to acquire the issued and to be issued share capital of Hastings, not already owned or controlled by Sampo and RMI.
‘The offer will be subject to shareholder approval and the receipt of regulatory and anti-trust approvals.’
He added: “In regards to the business’ performance for the first half of 2020, I am immensely proud of how the Hastings team has adapted and responded to Covid-19 to make sure we continue to do the right thing. We have taken support measures and actions amounting to tens of millions of pounds during the pandemic, focussed on our colleagues, customers and our local communities.”