10th Sep 2015 17:49
LONDON (Alliance News) - Jelf Group PLC late Thursday confirmed it has reached an agreement about a proposed takeover of the company by Marsh and McLennan Co Acquisition Ltd.
Jelf said insurance company Marsh and McLennan has offered 215.0 pence per share, valuing Jelf at around GBP258.0 million. That offer represents a 42% premium to its the closing price of Jelf shares on August 18, when it said it was in talks with Marsh and McLennan about a possible offer.
Jelf shares closed down 2.6% to 222.65 pence per share on Thursday.
"Jelf and the Marsh group have a strong cultural fit and share the same values that put the client at the centre of both businesses. The companies believe that the combination of the two firms will offer individuals and companies of all sizes market-leading customer service, advice and products," the companies said in a joint statement.
"The Jelf directors consider that while the prospects for future growth as an independent company remain strong, there are considerable benefits of combining with the Marsh group to accelerate Jelf's strategic and financial objectives," the statement added.
The Jelf directors have unanimously approved the acquisition and "intend to recommend" that shareholders vote in favour of the deal.
"As our clients' needs have continued to evolve, the Board and executive management team have given much thought about how best we meet their growing expectations. At the same time, we want to ensure that our colleagues are given the greatest opportunities to develop their careers. I am confident that this transaction is great news for our clients and colleagues alike," said Jelf Chief Executive Alex Alway.
By Joshua Warner; [email protected]; @JoshAlliance
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