One of Britain's fastest growing insurance brokers is preparing for a new stage of development under new ownership.
Layton Blackham is in talks with AXA that will play a crucial role in its future ...
One of Britain's fastest growing insurance brokers is preparing for a new stage of development under new ownership.
Layton Blackham is in talks with AXA that will play a crucial role in its future plans.
AXA owns Layton Blackham through a 99% stake in its parent company, Earlyweigh.
But its investment was held in preference shares, which do not carry voting rights.
A deal has now been agreed by which AXA has converted preference shares into ordinary shares, an industry source said.
It is understood that AXA is now in the process of selling part of its converted stake to a third party keen to invest in Layton Blackham's future.
The broker needs capital to feed plans to expand by acquisition and found a broker network scheme.
Layton Blackham's plans call for the network to be launched later this year and developed in 2004.
The new arrangement over the broker's ownership also allows AXA to get some cash back from its investment.
Layton Blackham declined to comment and AXA said only that it was in talks with the broker over its shareholding.
Layton Blackham's founder, Chris Blackham, is believed to be keen to protect his role at the top of the broker's power structure.
Because AXA held until recently only preference shares, Blackham was classed as the main shareholder through his stake of ordinary or voting shares.
Layton Blackham, which moved four places up the Top 50 UK Brokers table this year to 32nd place, achieved income of £17.5m through fees and commission in 2002 and made £308,000 pre-tax profit.
AXA's shareholding was held via a subsidiary called Venture Preference, whose directors are the AXA Insurance UK chief executive Peter Hubbard and its finance director, Patrick Regan.
