Brightside directors consider 25p a share offer ‘fair and reasonable’

Private equity house AnaCap is planning to buy broking group Brightside for £127m.

The deal is expected to complete in the third quarter of this year.

AnaCap has offered 25p a share for the broker, which Brightside’s directors consider ‘fair and reasonable’.

Brightside was the subject of a failed takeover bid by insurance group Markerstudy last year.

Talks broke down when Markerstudy lowered its offer price to between 20p and 22p a share from the original offer of 27p a share.

AnaCap has set up a new company, Belvedere Bidco, to acquire the broker.

The deal already has approval from shareholders representing 53.8% of Brightside’s share capital.

Bidco director Jatender Aujla said he aimed to develop Brightside “into one of the leading personal and commercial lines insurance brokers in the UK market, through pursuing growth while extending and deepening its relationships with insurers and distribution partners.

“We are excited by the opportunity to bring our operational expertise to Brightside, as well as capital, to support a strategy to create long term and sustainable value.”

Brightside chief executive Paul Williams added: “We have significant ambitions for Brightside and its future prospects and growth potential and see AnaCap as an ideal partner with equally large ambitions for the future potential of Brightside.”

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