Esure to be taken into private hands after £1.2bn deal agreed with Bain Capital

THE BOARD of esure has agreed to a £1.2bn takeover by private equity outfit Bain Capital, with the insurer’s biggest shareholders coming out in support of the deal.

Esure will recommend Bain’s formal 280p a share offer to investors, which represents a 37 per cent premium to last week’s share price.

The firm’s largest backers, Sir Peter Wood and Toscafund – which hold around 31 per cent and 17 per cent of esure respectively – have given their blessing to the deal.

A total of 75 per cent of shareholders must vote to approve the acquisition, which would see esure taken private and delisted from the London Stock Exchange.

Sir Peter, the group’s chairman, stands to pocket around £370m from the sale.

He said: “It is a great outcome for shareholders, for the company, and for customers.

“Since its IPO in 2013, esure has grown to nearly 2.5 million in-force policies, delivered more than £800m of annual gross written premiums, and returned just under £300m to shareholders in dividends as well as the considerable value delivered to shareholders through the demerger of GoCompare.”

“As a private company and with Bain Capital’s backing, esure will be able to invest behind the innovation required to fully realise the opportunities in this market.”

Sir Peter will continue as chairman following the takeover. Esure also announced results for the first half of the year, with profits dented to the tune of £14m by the Beast from the East.

The company reported a pretax profit of £36.1m, down 20 per cent from £45.1m in the six months to June 30.

Esure blamed the drop on a hit from cold weather in March and flash flooding in May.

Esure provides insurance products to more than two million drivers, home-owners, pet owners and holidaymakers across the UK.