Sir Peter Wood in line for huge windfall as Bain Capital makes £1.2bn approach for Esure

ESURE is in advanced talks to be taken over by Bain Capital for £1.2bn, putting the insurer’s millionaire founder in line for a gigantic windfall just months after he ruled out a deal.

The company’s share price shot up 31pc to 267.2p yesterday after the US private equity giant proposed buying the motor insurer at 280p a share. Esure, which also owns the Sheilas’ Wheels brand, said it had “indicated to Bain Capital that it would be minded to recommend a firm offer” at that price. The move puts chairman Sir Peter Wood, who has a 30.7pc stake in the business, in line for a £360m payday.

Sir Peter has taken more control of the business after the exit of Esure’s boss Stuart Vann in January, which heightened speculation about a sale. However, Sir Peter told The Daily Telegraph then: “I’m not planning to sell my shares, I’m not planning to disappear… [It’s] a lot of noise but nothing of any substance.”

The insurance tycoon made a fortune after building motor insurer Direct Line and later setting up Esure. He has a mansion in Florida’s Palm Beach and last year told a local magazine that he owns a large collection of clothes worn by Margaret Thatcher.

Analysts welcomed a potential deal with Bain yesterday. “Many investors have been looking for a suitable exit and in Bain they appear to have found [it],” said Barrie Cornes at Panmure Gordon.

Bain Capital has until Sept 10 to make a firm offer.