Insurer to return to the stock market after a ten-year absence
Euclidian is set to return to the stock market ten years after its first flotation with a £125m price tag.
While the insurer has not decided whether to float on the Alternative Investment Market (AIM) or the London Stock Exchange (LSE), pundits reckon that it will choose the LSE.
Warren Buffet's Berkshire Hathaway pledged to buy a 25% stake worth £31.25m. Berkshire Hathaway is also the capital provider of Euclidian's Syndicate 1243.
Euclidian managing director James Stuart is also set to invest more money once the company lists.
Explaining the decision to float, Stuart said: "We have to go round and get professionals in the insurance world to pledge their support every 12 months.
"We are looking to replace our temporary capital with something more permanent."
Stuart said the company had yet to decide whether to float on AIM or go for a full flotation on the LSE.
The company initially floated on the main market in November 1994 at 100p per share and market capital of £20m.
In August 1999, the company was bought out by Zurich Financial Services' wholly-owned subsidiary, Centre Solutions, at 135p per share.
But in January 2004, Stuart and other directors purchased Centre Solutions' stake.
Michael Wade, chief executive of investment vehicle Rostrum Group, joined Euclidian this month as non-executive chairman to help with the flotation.
Accountancy firm Mazars and venture capitalist Lexicon Partners are also advising on the deal.