- Insurance company Ensurance (ENA) enters a non-binding agreement to sell its UK operations to ASX-listed PSC Insurance (PSI) for $8.2 million
- To acquire 100 per cent of the assets, 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 agreement remains subject to the execution of a binding sale and purchase agreement, due diligence and other conditions
- Ensurance CEO Tom Kent says the sale of the company’s UK operations is a result of growth opportunities in the Australian market
- Shares in Ensurance were up 2.13 per cent and trading at 24 cents at 1:24 pm AEST
Insurance company Ensurance (ENA) has entered a non-binding agreement to sell its UK operations to ASX-listed PSC Insurance (PSI) for $8.2 million.
To acquire 100 per cent of the UK assets, PSC will pay Ensurance $6.15 million in cash and $2.05 million in shares, which will be held in escrow for 12 months.
Ensurance CEO Tom Kent said the sale of the UK operations was the result of growth opportunities in the Australian market.
“Our Australian business is expanding rapidly and we believe there is much more growth to come. We now have a national network of offices, and the demand for our specialised insurance offerings, which are backed by leading underwriters, continues to increase,” Mr Kent said.
“We have taken the strategic decision to redeploy the capital from the sale of the UK operations into our Australian business to ensure we can take full advantage of these growth opportunities.
“We are excited to be carrying out this transaction with the PSC Group, who we value as a key distribution partner of ours in Australia.”
Today’s agreement remains subject to the execution of a binding sale and purchase agreement between the two companies, due diligence and other conditions.
Shares in Ensurance were up 2.13 per cent and trading at 24 cents at 1:24 pm AEST.