Britain's largest insurance brokerage Willis Corroon yesterday announced an agreed GBP851 million (about HK$10.85 billion) takeover by a private consortium of Anglo-US insurance groups led by United States firm Kohlberg Kravis Roberts (KKR).
The consortium, Trinity Acquisitions, is made up of a formidable group of insurance firms including Guardian Royal Exchange, Royal SunAlliance, Chubb Corp, Hartford Financial Services Group and Travelers Property Casualty Group.
Trinity is offering 200 pence per share, a 12 per cent premium to Tuesday's 178.5 pence closing price and GBP10 for each American Depositary Receipt.
Takeover company KKR will own 81 per cent of Trinity initially, with the remaining 19 per cent split between the insurance companies. KKR's investment could fall to 66 per cent as employees of Trinity are encouraged to invest in the company.
Collectively the insurance firms have agreed to invest GBP193 million in Trinity, accompanying senior debt financing of US$475 million, and $165 million from KKR, plus $575 million in bridge financing.
The transaction establishes KKR, the world's largest buyout firm, in the European buyout market as it seeks to take advantage of a surge in management-led takeovers in the past year.