Acquisition

RNS Number : 7105N

Chesnara PLC

20 May 2015

 

Acquisition

Chesnara plc

20 May 2015

Chesnara plc

Completion of acquisition of the Waard Group

Following the announcements on 3 December 2014 and 11 May 2015 in connection with the proposed acquisition of the Waard Group, from DSB Beheer B.V. ("DSB"), Chesnara is pleased to announce that all remaining conditions precedent to the completion of the acquisition have now been fulfilled and the acquisition has been completed.

The total consideration paid to DSB was €69.9m (approximately £54.3m¹), comprising an initial consideration of €67.8m and deferred performance-related compensation of €2.1m.

John Deane, Chief Executive of Chesnara Plc, commented:

"I am delighted to welcome the customers and employees of the Waard Group to Chesnara. This transaction represents another successful acquisition for the Group and provides the opportunity to progress other value enhancing deals in the Dutch market."

Note 1:  The GBP equivalent of the consideration for the Waard Group has been reported at a rate of €1.29/£.  This represents the blended rate of the transaction, with the majority of the purchase price being converted into Euros following the equity raising announced on 3 December 2014.  The balance of the consideration was converted at the spot rate as of 18 May 2015.

For further enquiries, please contact:

Chesnara plc

John Deane, CEO

Tel: [phone]

Press

Newgate

Roddy Watt

Tel: [phone]

Notes to editors:

Chesnara plc ('Chesnara'), which listed on the London Stock Exchange in May 2004, is the owner of Countrywide Assured plc ('CA plc'), Protection Life Company Limited ('PL') and Movestic Livförsäkringar AB ('Movestic').

CA plc is a UK life assurance subsidiary that is closed to new business.  In June 2005 Chesnara acquired a further closed life insurance company - City of Westminster Assurance - for £47.8m.  With effect from 30 June 2006, CWA's policies and assets were transferred into CA plc.  Save & Prosper Insurance Limited and its subsidiary, Save & Prosper Pensions Limited, were acquired on 20 December 2010 for £63.5 million.  With effect from 31 December 2011, the business of Save & Prosper was transferred into CA plc.  On 28 November 2013 Chesnara acquired Direct Line Life Insurance Company Limited (subsequently renamed Protection Life Company Limited) from Direct Line Group plc for £39.3m.  On 31 December 2014 the PL business transferred into CA plc.  CA plc operates an outsourced business model.

Movestic, a Swedish life assurance company which originally focused on pensions and savings, was acquired on 23 July 2009 for £20 million.  The company is open to new business and seeks to grow its position in the Swedish unit-linked market.  Its proposition was strengthened in February 2010 with the acquisition of the operations of Aspis Försäkringar Liv AB which has a risk and health product bias.

Further details are available on the Company's website (www.chesnara.co.uk).

 

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