Legal & General Retail Investments (LGRI) has agreed terms for a £62m acquisition of Suffolk Life.
The wholly-owned subsidiary of Legal & General, LGRI’s recommended cash offer is £15.75 for each Suffolk Life share.
LGRI announced it has received binding irrevocable acceptance from Suffolk Life directors and various other shareholders, representing approximately 52.1% of the existing issued Suffolk Life share capital.
The Suffolk Life directors consider the offer terms to be “fair and reasonable” and intend to unanimously recommend shareholders accept the deal.
“Suffolk Life is an outstanding business which has developed a leading position in the fast growing bespoke SIPP market,” Legal & General Group chief executive Tim Breedon says.
“Growing our savings business is a strategic priority for Legal & General. Pensions and the mass affluent market are areas we have targeted for development. Suffolk Life enables us to accelerate our growth in these key expanding markets.”
Suffolk Life's CEO Henry Catchpole says the deal is in the best interests of clients, employees and shareholders.
“Our strategic review has confirmed that, whilst the development of the pensions landscape presented Suffolk Life with attractive opportunities to grow profitably, Suffolk Life’s development could be accelerated through being part of a larger group which offered clear distribution synergies,” he says.
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