Lloyd's broker PWS Holdings has completed a £7.25m management buy-out after three months of negotiation.

The board first announced its intention to become private during its interim results in May, when it stated the 0.3p dividend payment at the time was not giving shareholders value for money.

The management has acquired 100% of the shares through the backing of Allied Irish Bank (GB).

The deal values the shares at 22.5p, which equates to 45% more than the closing mark of shares at 16p.

Managing director Peter Smith said its new-found private status would enable the group to steadily expand.

He added: “There are some signs of the market hardening, but insurance is very cyclical and we have a young management team who are here for the long-term.”

PWS was founded in 1964, became a Lloyd's broker in 1967, and was floated on the London Stock Exchange in 1984.

Initially operating solely from its office in London, the company developed an extensive international client base with offices in New York, Singapore and Amsterdam.