Alexander Forbes International Risk Services (AFIRS) has rejected reports of a management buyout as “pure conjecture”.
It comes as Alexander Forbes Group announced today on the South African stock exchange that it had received approaches from private equity firms to acquire the broker.
The announcement said: “Following these approaches the company has commenced discussions with private equity parties regarding a potential transaction to acquire 100% of the company.”
Rael Gordon, Group chief executive has stood down from his position, he will be replaced by Peter Moyo from 1 July.
The move sparked speculation that AFIRS will be subject to an MBO following the appointment of Mike Hammond, former JLT Risk Solutions chief executive, as deputy chairman.
But last week Hammond told Insurance Times: “I wouldn't come to a broker that was about to be sold.”
In today's statement the broker was non-committal saying: “To optimally position the management team of IRS to capitalise on market opportunities, Alexander Forbes is currently considering the structural options to best support this growth.”
Stewart McCulloch, chief executive of AFIRS, hinted today that the broker could receive funding from an outside investor to push growth of the division.
He said: “We have ambitious plans for the future which include enhancing our existing businesses whilst adding new areas of specialism and we believe the introduction of a new private investor will help realise these goals.”
