Esure's share price rises 33% following Bain's takeover
The UK car insurer has accepted a £1.17bn ($1.5bn) takeover bid from private equity firm Bain Capital. The share price rose 33% on Monday, it's highest ever, finishing at 280 pence a share, with the CEO and founder Peter Wood expecting to see a £371m windfall. Bain will not sack any of the 1850 employees as they wish to invest heavily to ensure enhanced growth for the start up insurer.

ESure Group Plc has received an unsolicited offer of about 1.17 billion pounds ($1.5 billion) from Bain Capital Private Equity LP as private equity firms seek to consolidate the insurance industry.

The offer of about 280 pence a share in cash is a 37 percent premium to the closing price on Friday, the U.K. insurer said in a statement on Monday. ESure’s board of directors expects to recommend the bid. The shares rose as much as 33 percent, the most ever, on Monday.

Private equity firms are increasingly getting involved in insurance takeover deals in the region, wagering their investing expertise can help lift returns from managing premium income. Firms including Apollo Global Management LLC have already been buying up similar insurers in the U.S., while Cinven is in exclusive talks to acquire a retirement products unit of AXA SA, having already acquired Guardian Financial Services in the U.K., Eurovita in Italy, and Viridium in Germany.

ESure provides insurance services for cars, vans, travel, motorbikes and pets. [Editor’s note: ESure is headquartered in Reigate, England].

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Topics Carriers