Business
Further Investment in Insurance Broker
Further Investment in Insurance Broker.
About this update from B.p. Marsh & Partners Plc
[{"type":"text","content":"\n \nRNS Number : 0825E B.P. Marsh & Partners PLC 01 April 2011 \n \n\n \nB.P. Marsh & Partners Plc (\"the Company\")\nInvestment in Insurance Broker\n \nB.P. Marsh & Partners Plc (AIM: BPM), a niche venture capital provider to early stage financial services businesses, today announces that its wholly owned subsidiary, B. P. Marsh & Company Limited (\"BP Marsh\"), has acquired an 11% equity stake in Besso Holdings Limited (\"Besso\") from Union Hamilton Reinsurance Limited (\"Union Hamilton\") for a cash consideration of £735,000. Further consideration of up to £300,000 may be payable by B. P. Marsh, in the event that 50% or more of the voting shares in Besso are acquired within 18 months, at a higher price per share. The acquisition was made alongside two other parties, namely, Brian Marsh Enterprises Limited and Mr. Michael Wade who acquired the remaining 26.3% stake from Union Hamilton for an aggregate consideration of £1,715,000. These acquiring parties are also subject to the same anti-embarrassment provisions as described above. \n \nAs a result of this transaction, B. P. Marsh's equity interest in Besso has increased from 22.7% to 34.0% and Brian Marsh Enterprises Limited and Mr. Michael Wade hold 11.3% and 15.0% respectively.\n \nBesso is a Lloyd's insurance broking group that was established in February 1995, with the assistance of B.P. Marsh, by a specialist team departing from Jardine Lloyd Thompson. The company originally specialised in insurance broking for the North American wholesale market but, through acquisitions of businesses and teams, is now a multi-niche Lloyd's Broker with a turnover of £27,946,202 for the year ended 31st December 2009 and profits before tax of £539,224 for the same financial year.\n \nB.P. Marsh's investment consists of an equity investment of £735,000 and a subscription for loan stock of £2,540,000 which bears an annual coupon of 14 per cent. per annum. As part of the transaction Besso redeemed all of its preference shares, including £765,000 worth of preference shares held by Union Hamilton and £1,775,000 worth of preference shares held by Marsh Insurance Holdings Limited.\n \nAs well as the equity investment Brian Marsh Enterprises Limited and Mr. Michael Wade have also subscribed for loan stock, on the same te...