Liverpool Victoria acquires Highway for £150m
by David Masters
Story link: Liverpool Victoria acquires Highway for £150m
Mutual society Liverpool Victoria has acquired motor insurance company Highway Insurance in a deal worth £150 million.
Rumours of the takeover yesterday saw Highway’s share price soar from 49.75 pence to 63 pence.
In the closing deal Highway agreed terms of 75.35 pence per share and an interim dividend of 1.65 pence per share.
This is a 47% premium on Highway’s closing share price on August 26th, although it is still lower than Highway’s share price of 80p at the beginning of 2008.
Highway’s profit for the first half of 2008 fell to £1.4 million, compared to £11.8 million for the same period last year.
Commenting on the acquisition, Liverpool Victoria said there is a ‘strong industrial logic’ to the takeover, which it hopes will help the company in its target to become a top five insurer by 2012.
Andrew Gibson, CEO of Highway Insurance, added that his company had achieved an ‘attractive financial result’ that will allow both companies to better capitalise on opportunities in the general insurance market.