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Coverforce Holdings, Australia’s largest privately-owned insurance broker, has taken legal action against minority shareholders Pemba Capital Partners over a takeover bid by insurance broker network AUB Group.
In an ASX announcement, AUB said it reached a conditional agreement with Pemba Capital Partners to buy a 49% interest in Coverforce and that it will work with Pemba to buy the remaining shares. The broker network said the transaction is expected to be completed in the last quarter of this year, for roughly $150 million to $200 million.
Coverforce said, however, that Pemba “do not have the authority to undertake a sale” and that “Coverforce is not for sale.”
“The matter, which is a dispute with a HarbourVest-owned Pemba Fund, has been before the Supreme Court this morning and will be strongly resisted by the majority shareholders,” Coverforce said in a media statement. “We are also taking advice as to an action for damages against Pemba Capital Partners and AUB Group.”
