Brit takeover approved by Apollo & CVC

Private equity firms Apollo Global Management and CVC Capital, the two biggest shareholders of re/insurer Brit, have approved its takeover by Fairfax.

Yesterday, March 23, 2015, an announcement revealed that Fairfax had received 294,029,011 votes in favour of the deal, representing approximately 73.4 percent of the issued share capital.

The majority of acceptances stemmed from Apollo’s and CVC’s stake in the company (73.3 percent).

Fairfax agreed to buy Brit for £1.22 billion. Under the terms of the offer, Brit shareholders will receive 305p in cash per share, inclusive of the expected 2014 final dividend.

The Brit offer price implies a price to net tangible assets multiple of 1.73x based on Brit’s net tangible assets of £704.4 million as at June 30, 2014.