Insurer Just Group is set to become the next major British listed company to leave the London stock market after agreeing to a £2.4 billion takeover by Canadian investment giant Brookfield.
The board of the London based FTSE-250 business, which specialises in taking over the employee pension schemes on other companies has recommended a 220p a share offer from Brookfield’s financial services arm Brookfield Wealth Solutions (BWS).
The deal was welcomed by the Chancellor of the Exchequer, Rachel Reeves who said: “This commitment demonstrates strong faith in the UK economy as we deliver on the Plan for Change, reinforcing the fact that the UK remains one of the best places in the world for business which has attracted a record level of private sector investment since the election, worth £120bn.”
The offer represents a huge 75% premium to the closing price of 126p yesterday afternoon. It is also 54% higher than the average of 143p over the past six months. Just Group was formed through the merger of Just Retirement and Partnership Assurance in April 2016. It currently manages more than £27 billion of pension savings on behalf of 700,000 customers.
The deal will add to Brookfield’s huge portfolio of UK assets, which include CenterParcs, Chekatrade, and a 22% share in Canary Wharf Group. BWS was spun out in 2021 and has its shares quoted on the New York and Toronto stock exchanges.
BWS operates mainly in North America, but recently announced the launch of its UK insurance operations through its Blumont Annuity Company UK subsidiary.
BWS said it “intends for Blumont and Just to operate as a single, consolidated insurance group under the well-known and highly respected Just brand.” It will keep its headquarters in London.
Sachin Shah, CEO of BWS, said: “The acquisition of Just will accelerate our growth ambitions for the UK, a core region for us given its status as one of the world’s preeminent pension markets combined with highly attractive investment opportunities.
“We look forward to supporting Just’s growth in the UK, building on its commitment to providing financial certainty and excellent service to its policyholders. We own and operate insurance companies built for long-term success, supported by high quality assets, and are committed to providing ironclad retirement security products.”
David Richardson, Group CEO of Just, said: “The proposed combination with BWS reflects the strength of the Just platform and the long-term value of the strategy we have delivered. BWS and the wider Brookfield group’s scale, investment expertise and alignment with our purpose will enable Just to broaden its reach and enhance its offering, which will accelerate the fulfilment of our purpose to help more people achieve a better later life. “