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- Ensurance (ENA) signs a binding agreement for the planned $8.2 million sale of its UK arm to PSC Insurance Group (PSI)
- The companies first flagged the deal back in July, with PSC to pay Ensurance $6.15 million in cash and $2.05 million shares for control of the UK operations
- While the companies have now struck a binding deal for the sale, it still requires approval from the UK Financial Conduct Authority, expected to be granted around Q3 FY23
- ENA will use the funds to focus on its “rapidly” expanding Australian business, which the company says is currently “delivering strong results”
- ENAUK CEO Tim James will now step down from his role after five years in the position
- ENA shares are up 2.1 per cent to trade at 24 cents at 2:45 pm AEDT, while PSC shares are down 1.01 per cent to trade at $4.90
Ensurance (ENA) has struck a binding agreement for the planned $8.2 million sale of its UK arm to fellow ASX-listed PSC Insurance Group (PSI).
The sale and purchase agreement (SPA) comes after the companies entered a non-binding agreement in July over the sale of the UK operations — a decision Ensurance CEO Tom Kent said came on the back of growth opportunities in the Australian market.
Mr Kent said the Australian business was “expanding rapidly and delivering strong results”.
“The completion of the deal will strengthen the company’s balance sheet and position Ensurance to capitalise on the immense growth opportunities we see in the Australian market.”
Under the terms of the SPA, PSC will pay Ensurance $6.15 million in cash and $2.05 million in shares, which will be held in escrow for 12 months.
The deal still requires approval from the UK Financial Conduct Authority — a process expected to take between three to six months that the companies expect to complete before the end of March next year.
Ensurance UK CEO Tim James will now step down from his role after serving in the position for five years. The ENA board and senior management team will remain unchanged.
ENA shares were up 2.1 per cent to trade at 24 cents at 2:45 pm AEDT, while PSC shares dropped 1.01 per cent to trade at $4.90.
