Further acquisitions planned with £150m "war chest"

The Towergate Partnership's financial restructure will allow the group to buy out the equity share of Royal Bank of Scotland (RBS), the company has confirmed.

Executive chairman Peter Cullum told Insurance Times that the restructure, to be finalised in July, will leave the company's directors with a 98% share of Towergate's total equity.

RBS, which currently owns a 25% share in the company, is expected to keep around 2% of the equity-share.

Chief executive Andy Homer said Towergate wanted to be left with a "war chest of between £100 and £150m" for acquisitions, after paying off RBS for its investment.

Homer said Towergate and Folgate had collectively spent this amount on acquisitions already. Three major acquisitions are scheduled in the next few months, Homer added.

Homer also scotched rumours of a Towergate sale, said to be scheduled for 2007.

"I personally don't think that will happen. [A buyer] would need to have somewhere in the region of £1bn in two years' time to make an offer."

The consolidator has also been linked to a flotation.

RBS was not able to comment at the time of press.

' Towergate Partnership has launched a Nottingham-based operation after recruiting two former Oval directors.

Towergate Risk Solutions Nottingham will open in July under Neil Emmerson and Sally Swan.

Homer said the group had also acquired two former members of South West-based broker alliance Westinsure, based in Falmouth and Newquay.