Former CEO to Takeover U.K’s Cox Insurance

Neil Utley, the former chief executive of the U.K.’s Cox Insurance Holdings plc, who resigned in June 2004, has reached a preliminary agreement to takeover the company for £300 million ($577.6 million).

A company bulletin said: “Cox announces that it has reached provisional agreement subject to the conditions below with Duke Street Capital V Limited, Englefield Capital LLP and Neil Utley (together “the Consortium”) on the principal terms of a possible recommended cash offer by the Consortium for Cox valuing each Cox share at 94 pence [$1.81] and has entered into an inducement fee agreement today with the Consortium in this connection. Under the terms of the envisaged offer, if made, shareholders would receive 92 pence [$1.77] per share in cash by way of the offer and a 2 pence [3.85 cents) per share cash dividend.”

While the transaction still awaits formal approvals, both Cox current management and Utley seem enthusiastic. Peter Owen and Andrew Fisher, Cox current Chairman and CEO respectively, commented: “The Board of Cox has great confidence in the strategy and prospects for the company. The Board believes that the value of the potential cash offer sufficiently reflects these prospects to justify proceeding with the Consortium’s proposal in the interests of Cox shareholders.”

Utley, who is leading the Consortium, stated: “If successful the Consortium intends to continue the development of Cox as a specialist insurer and retail insurance broker. Retention of Cox’s employees will be an integral part of our plan to help the business realise its future potential and we believe that our success would present them with significant opportunities going forward.”