Tuesday, 14 August 2018

Entrepreneur Sir Peter Wood makes £360m from esure sale

Entrepreneur Sir Peter Wood is to make £360m from selling his stake in the insurer esure, which is being bought by a private equity company.

The insurer, which also owns Shelia's Wheels, is being bought for £1.2bn by Bain Capital.

Sir Peter, who founded esure, will reinvest £50m into the business and will remain as chairman.

The deal was announced alongside interim results showing a £14m hit from the cold weather earlier in the year.

More customers made claims for burst pipes and problems with their cars caused by the "Beast from the East".
Profits in the first six months of the year fell 20% to £36.1m.

But Sir Peter said the business was delivering "profitable growth" and described the takeover by Bain as "a great outcome for shareholders".

It means that the shares, which were floated at 290p in March 2013, will no longer be listed on the stock market, assuming the deal is completed.

Bain is offering 280p a share, although this cannot be compared directly with the original price as the company has bought and sold GoCompare since then.

The offer price is a 37% premium to the price before news of the deal emerged.

The shares were trading 3.5% higher on Tuesday at 277p.

BBC         News.


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