Chairman Neil Utley and management would remain ‘significant shareholders’ under plan

Gary Hoffman

Insurance and broking group Hastings is considering bringing in more investors as an alternative to floating on the stock market.

Following press speculation that several private equity firms were interested in taking a minority stake in Hastings, the company has issued a statement confirming it is “exploring the possibility of introducing new private investors to share in the further growth of the business.”

It added that: “Hastings is a privately owned company and, under this plan, would remain so.”

Hastings has long been planning an initial public offering (IPO), and rumours had suggested the company would float in 2012. However, volatile equity markets  prompted the company to put the plans on hold.  

Hastings chief executive Gary Hoffman (pictured) suggested that the company was getting cold feet about the IPO when he told Insurance Times that the company “was keeping its  options open” on flotation after the company released its 2012 results in March.

Hoffman said at the time: “There is no rush to do anything, but we are keeping our options open. We don’t need external funding to fund our growth plans. We are expanding rapidly, and we are creating our own capital to reinvest in the business.”

The Hastings statement stressed that there is no certainty that a transaction will come to fruition and said that “the existing shareholders continue to keep all options open.”

The statement also said that Hastings chairman Neil Utley and the Hastings management and staff that own company shares “will retain a significant shareholding” if new investors are brought on board.

Former Equity Red Star chief executive Utley led a management buy-out of Hastings in 2009.

The private equity houses rumoured to be interested in investing in Hastings include Advent, BC Partners, Bregal Capital, Carlyle and Cinven.