Friends Provident today abandoned 177 years of independence and agreed to be taken over by Resolution, Clive Cowdery’s insurance consolidation vehicle, for £1.86 billion in cash and shares.
Sir Adrian Montague, Friends’ chairman, who last month dismissed the original Resolution approach as “wholly inadequate and unsuitable”, described the new offer as an attractive transaction for shareholders.Evening Gowns
Friends’ shareholders, including 700,000 private investors who received free shares in its demutualisation in 2001, will be able to opt to receive cash for up to 2,500 shares.prom dresses
Resolution is offering the equivalent of 0.9 of its own shares for each Friends share, which, based on the 88.25p closing price last Friday, values Friends shares at 79.4p and the whole business at £1.86 million.
The offer represents a premium of 31.5 per cent to the prevailing Friends share price the day before the Resolution approach was made public on July 10. It represents 69 per cent of the Friends’ EEV – a commonly used measure of value in the insurance industry. Shares in Friends rose 1.87 per cent to 76.53p in early trading. UGG Boots
