Friends drops sale of Pantheon
Friends Provident has reported that it is no longer selling its Pantheon Financial business.
The insurer said it has had a number of positive expressions of interest in the independent financial adviser firm that specialises in the high net worth and ultra high net worth markets.
However, offers for the unit have been too low and would not realise suitable value for shareholders.
Friends acquired Pantheon in May 2007 for an upfront payment of £16.8 million in cash with potential further payments spread over the following three years, depending on performance.
It is understood that a private equity firm had been interested in buying the business for around £30 million.
In January of this year, the life and pensions provider took the decision to divest itself of non-core businesses to improve profitability.
The move followed the failure of the Friends’ merger negotiations with Resolution, the closed life fund consolidator.
Along with Pantheon, the group has been auctioning Lombard, its tax-efficient investment business, and its 52% stake in F&C Asset management.
Swiss Life has shown an interest in the Lombard business but last week, Friends’ share price dipped sharply on rumours that a sale would not proceed.
Analysts expect Pantheon to be put up for auction again once markets recover.
Category: Companies News, Insurance News
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