Gocompare.com plans its own LSE listing by year-end
Following its demerger from esure Group, price comparison site Gocompare.com plans to have its own listing on the London Stock Exchange by year-end. While still awaiting regulatory approval and approval from Esure Group shareholders, it was announced that prior to the demerger, GoCompare.com will draw down a new £75m debt facility and pay esure a cash dividend of around £63m. The CEO of Gocompare.com is reportedly looking to the demerger as an opportunity for both businesses to focus on expanding within their niches.

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Price comparison business Gocompare.com, which is based in Newport, is set to become a London Stock Exchange company in its own right.

Owner of the company, in London Stock Exchange listed insurance giant esure Group, said that following a strategic review it plans a demerger of the business which was founded by Hayley Parsons.

Esure took ownership of the remaining shares it didn't then own in the company in a £95m deal in 2014, providing a £43.7m exit for its owner in Newport-born Ms Parsons.

If approved by esure Group shareholders and subject to regulatory approvals, it is planned that Gocompare will become a listed company in its own right on the main London Stock Exchange by the end of the year.

Prior to demerger it is intended that Gocompare will draw down a new £75m debt facility and pay esure a cash dividend in the region of £63m.

Chairman of esure Group Sir Peter Wood said: "Following the strategic review and the appointment of Matthew Crummack as CEO of Gocompare.com, we believe that a demerger of Gocompare.com from esure will allow both entities to thrive and reach their full potential.

“Esure and Gocompare.com are distinct businesses, which are both underpinned by strong brands.

"A demerger will allow the separate management teams to focus on their independent strategies, and also enhance their ability to align senior management incentives.

“I am delighted with the breadth, depth and experience of the members of the Gocompare.com Board and look forward to working with them in my role as chairman of Gocompare.com. I will also continue as chairman of esure.

“The esure board intends to recommend that esure shareholders vote in favour of the Demerger."

Mr Crummack said: "The team at Gocompare.com, which we have strengthened at executive team level since my arrival as CEO in June, is excited by the opportunities that the demerger will provide.

"We are all focused on the implementation and evolution of the Gocompare.com strategy, which we believe will continue to enhance Gocompare.com’s business performance.”