CVC, Apollo to reap c£900m in sale of Brit to Fairfax

Fairfax agreed to acquire all of the company's outstanding shares, offering 305 pence in cash per Brit share (including a final dividend for 2014). Apollo and CVC committed to sell approximately 294 million Brit shares, equating to a stake of around 73%. The offer represents a premium of 11.2% over the closing price of 274.2 pence per share on February 16, and values the business at around £1.2bn.

This means Apollo and CVC stand to reap approximately £896m from the sale of their stake.

Previous investment
Apollo and CVC acquired Brit in October 2010, taking the company private from the London Stock Exchange in a deal valuing the business at £888m.

Brit re-listed in a £960m IPO in March last year. The offering comprised 100 million existing shares sold by CVC, Apollo and the company's management at 240 pence apiece, meaning gross proceeds for the selling shareholders totalled £240m prior to any exercise of the over-allotment option. CVC and Apollo remained the company's biggest shareholders following the IPO.

Company
With group headquarters located in Amsterdam and UK operations headquartered in London, Brit is an insurer and reinsurer that specialises in commercial insurance with a focus on property, casualty and energy businesses. The firm underwrites policies in the Lloyds market.

The company recorded turnover of £1bn in 2013, as well as an operating profit of £126.6m. Financial results for 2014 are set to be disclosed at the end of February.

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• Topics
• Exits
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• UK / Ireland
• Benelux
• CVC Capital Partners
• Apollo Management
• Unq2015Mar