Resolution, the acquisitions vehicle founded by entrepreneur Clive Cowdery, on Tuesday clinched its first deal with a 1.86 billion pound takeover of life insurer Friends Provident , Reuters reports.
Meanwhile, the deal is Resolution's first major acquisition in its bid to acquire three to four insurers in the next few years. It was set up to try and lead consolidation in the U.K. insurance sector, targeting companies that its management thought weren't providing enough value for shareholders. The deal has not been easy to achieve, with Resolution forced to sweeten its offer after Friends rejected its initial approaches.
Friends said Resolution will offer 0.9 new Resolution shares for each Friends share. Resolution is also offering a cash option, with up to £500 million available for Friends shareholders who would rather cash out , Wall Street Journal reports.
However, Mike Biggs, chairman of Resolution has hailed the deal as an 'excellent first step' in its campaign to consolidate and restructure the insurance industry , guardian.co.uk reports.