The proposed takeover of the insurer LV= by Bain Capital has taken a new turn as Reuters has today reported that the organisation has proposed £111 million in one-off member payments - if the deal goes ahead. This means every eligible member will receive £100 if takeover plans are successful.
The proposed deal with Bain Capital is said to be valued at £530 million, and members of the mutual insurer are due to vote on the takeover on December 10.
As reported by Insurance Business UK, last week the Financial Conduct Authority (FCA) gave LV= the green light to proceed with the disputed sale of its pensions and life insurance business to US private equity firm Bain Capital, which allowed the insurer to put its proposals for the takeover to a member vote.
In a letter to stakeholders, the FCA said that it had, “scrutinised the fairness of the proposed transaction and process for how it is decided.”
The financial regulator added that its decision followed “extensive engagement” with LV=, where it challenged the mutual insurer’s proposals to ensure fair treatment of its policyholders.
“As a result,” the FCA said, “we have now provided our non-objection to LV= proceeding to the court and to putting the proposals (on both the overall Bain transaction and the scheme of arrangement) to member votes, subject to LV= meeting some additional requirements,” the FCA wrote.
