Recommended £95 million cash offer by Towergate Partnership
Limited for Broker Network Holdings plc ("Broker Network")
Towergate, the UK's largest independently owned insurance
intermediary, announces that it has reached agreement on the terms
of a recommended cash offer for Broker Network, the AIM listed
insurance broking network business. The offer values the entire
issued and to be issued share capital of Broker Network at
approximately £95 million.
Broker Network operates a network of 169 independent commercial
insurance brokers in the UK and a key element of Towergate’s growth
strategy is to establish an insurance broking network alongside its
existing owner brokers and underwriting managing general agents.
The Broker Network Directors believe that the transaction brings
scale benefits to Broker Network and its members, such as enhanced
terms with underwriters, which Broker Network would otherwise not
be able to achieve.
Towergate's business consists of a number of specialist
underwriting agencies and regional brokers providing a wide range
of specialist and non-specialist general insurance products in
partnership with a core group of capacity providers with whom the
underwriting risk is placed.
Since its admission to AIM in May 2004, Broker Network has
successfully implemented a strategy of organic growth by attracting
more members to its network and acquiring retail insurance broking
Towergate attaches great importance to the skills and experience
of the existing management and employees of Broker Network and
believes that they will be an important factor for the continuing
success of the enlarged group.
Towergate has received irrevocable undertakings to accept or
procure the acceptance of the Offer in respect of a total of
8,499,420 Broker Network Shares representing approximately 55.2 per
cent of the existing issued share capital of Broker Network. The
Broker Network Directors have unanimously recommended that Broker
Network Shareholders accept the offer.
Commenting on the Offer, Peter Cullum, the Executive Chairman of
Towergate, said: "We are delighted to announce this transaction.
This is a deal that makes great sense for employees, brokers and
customers alike of Broker Network - our two organisations
complement each other perfectly. I have known Grant Ellis for many
years and I know we both share the same passion for promoting the
role and value of a broker. We also share the same enthusiasm for
how Broker Network could flourish under our ownership and continue
to be run as a first class business for its broker members. Grant
Ellis's proposed position as the Chairman of the Network Division
of Towergate demonstrates our commitment to offering the leading UK
Commenting on the Offer, Grant Ellis, the Chief Executive of
Broker Network, said: "The Broker Network Board feels that the
offer made by Towergate is in the best interests of the Broker
Network Shareholders and indeed in the best interests of the Broker
Network business, its network members and its people too. Towergate
is a major presence in the UK insurance market and joining forces
with them presents Broker Network and its members with further
opportunities to expand and prosper, which I'm very excited
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