13th Aug 2018 11:37
LONDON (Alliance News) - FTSE 250 insurance company esure Group PLC said Monday it has received an unsolicited takeover proposal from Bain Capital Private Equity LP.
Bain Capital and esure are in the "advanced stages" of discussing a possible offer for the entire 419.1 million issued and to be issued share capital of the company.
Bain Capital has submitted a proposal to acquire esure at a price of 280 pence per share in cash. Shares in esure were up 29% Monday in midday trading at 263.40 pence each.
The offer values the insurance company at GBP1.17 billion.
The 280p price represents a 37% premium to the 204p closing price Friday - the last business day before the announcement.
The proposal represents a premium of 40% to the one-month volume-weighted average price of 199p and about 29% to the three month volume weighted average price of 216p.
Esure said it "would be minded" to recommend the offer set out in the proposal if Bain Capital made a firm offer at that price.
Bain Capital has until September 10 to decided if it wants to make a firm offer or not.
Related Shares:
Esure Group