Towergate Broker Network Deal Completed

by Stewart Douglas

Story link: Towergate Broker Network Deal Completed

Insurance group Towergate has today cemented its approach for intermediaries Broker Network, according to a report to the London Stock Exchange earlier on today, confirming the latest step in its aggressive expansion programme designed to increase overall revenues.

Following an unconditional acceptance by a majority of the Broker Network shareholders over the course of yesterday afternoon, Towergate will now with certainty acquire Broker Network, buying up just under 93% of its ordinary share capital leading to the desired takeover.

Under takeover law, Towergate will also now be required to make a compulsary offer for the remaining ordinary share capital at certain predetermined rates, which may or may not be accepted by the respective holders of those shares but must nonetheless be offered in the interests of fairness.

Towergate has announced that it is now looking to remove Broker Network from the Alternative Investment Market, making it a private rather than publicly listed company with a view to decreasing the regulatory burden and minimising external influence on the way the firm is run.

The move comes as yet another in a long line of takeovers by Towergate, which established a dedicated acquisitions team to source and complete acquisition deals on a perpetual basis to ensure ongoing growth.

Towergate’s $95 million offer, equal to £6.05 per share, was accepted by the majority of shareholders to create a binding agreement, which will see the deal proceed before the new year. It remains to be seen whether the integration process will enable a return for Towergate over the next twelve months as it looks to continue its expansion programme.