Brit Insurance agrees to $1.40-bn takeover by Apollo Management, CVC Capital

Brit Insurance Holdings NV, an international general insurance and reinsurance group specialising in commercial insurance, today said that it has agreed to be taken over by a consortium of private equity firms for around £871 million ($1.40 billion).

The Amsterdam, the Netherlands-based Brit has recommended the £11.00 in cash per Brit share takeover offer from Apollo Management and CVC Capital Partners, valuing the insurer at around £871 million.

Under the terms of the offer, shareholders of Brit will receive £10.45 in cash plus a Contingent Value Payment (CVP) of up to £0.25 in cash a share.

Additionally, Brit Shareholders, who were on the register of the company on 22 October 2010, will remain eligible to receive the £0.30 Capital Distribution payable in cash on 7 December 2010.

The offer represents a premium of 47-51 per cent to Brit's closing share price of 729 pence on 10 June - the last day before the offer period started.

''I am pleased that we have reached agreement on the terms of the Offer which values Brit Insurance's shares at a significant premium to the prevailing market price prior to the commencement of the Offer Period,'' said John Barton, chairman of Brit Insurance.