Published: Jan 11, 2010
Focus:
Growth Capital
LitComp plc, a national provider of After the Event Insurance and medico-legal reports, is pleased to announce that the Offer from Torridon Capital Limited (“Torridon ”) for the entire issued and to be issued Share Capital of the Company, has been declared unconditional in all respects
Torridon Capital is a newly incorporated Scottish company established solely for the purpose of making the Offer. Torridon Capital is indirectly controlled by two of LitComp’s major shareholders, Nigel Wray and Maven Capital Partners (“Maven”) (Previously Aberdeen Asset Management). The existing management will continue to manage LitComp’s business following the completion of the offer.
The Offer will enable LitComp to redeem the outstanding £2.5m 10% convertible Loan Notes at a premium, and will also offer Ordinary shareholders a substantial premium over the latest closing share price. The offer will give Elite Insurance access to over £200 million of managed capital resources in order to develop and expand its existing business.
Elite, LitComp’s wholly owned subsidiary which specialises in After the Event Insurance (ATE), has shown continued and profitable growth since the business was established in 2006. Elite has consistently expanded its underwriting and support services and has recently opened new offices in London and Gibraltar.
LitComp has also recently appointed, Chris Collins as Non-Executive Director. Chris is a valued asset as he has a wealth of knowledge in the sector; he was previously Head of Insurance Regulation at the Financial Services Commission in Gibraltar.
Commenting on the offer Jason Smart, Chief Executive Officer of LitComp, said: “Management is delighted that we have now completed this deal. It gives us the opportunity to provide continued growth for the business in its existing markets as well as the prospect of entering into new markets. We have a number of exciting new products on the starting blocks and are looking forward to working with Torridon to further develop the business through its next phase of growth.”
Stella Panu, Partner at Maven Capital Partners commented: “LitComp is a niche insurance business led by a highly capable team who we have known for a number of years. We are committed to helping the business achieve its long term goals to become a major player in this area. Meanwhile, this offer also removes the uncertainty around the existing financing structure. Under our proposal LitComp will be well capitalised with no external debt, whilst enjoying the support of a substantial institutional investor."
