11th Aug 2015 06:17
LONDON (Alliance News) - Just Retirement Group PLC and Partnership Assurance Group PLC on Tuesday said they have agreed to merge in an all-share deal, and intend to raise GBP150 million together.
The deal values Partnership Assurance at about GBP668.5 million, equivalent to 166 pence per share. The stock closed at 154.25 on Monday.
Investors will receive 0.834 new Just Retirement shares for each Partnership Assurance share they already own. Just Retirement shareholders will own about 60% of the combined group, without taking into consideration the planned equity raising, with Partnership Assurance shareholders holding the remainder.
"Both businesses have at their core a focus on using outstanding intellectual property and underwriting expertise to deliver better value products and improved customer outcomes within defined benefit, UK retail retirement income and international markets," Chris Gibson-Smith, Partnership Assurance's chairman, said in a statement.
Just Retirement Chairman Tom Cross Brown said: "This transaction represents a unique opportunity to accelerate the existing strategy of both businesses. Our two businesses will be bigger, stronger and more efficient together, which we believe will allow us to deliver better returns to both policyholders and shareholders."
By Samuel Agini; [email protected]; @samuelagini
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