Agreement to acquire Lloyd's Limited Liability Vehicles
HUW is pleased to announce that, in line with its strategy of increasing underwriting capacity through acquisition, it has agreed in principle to acquire Nameco (No 76) Limited and Kempton Underwriting Limited, limited liability members of Lloyd's ("LLV"s), for a total consideration of 1,454,535 new ordinary shares in the Company. The agreed aggregate price of the LLVs being acquired is £2.4m and this is based on their estimated combined net asset value. The combined 2015 underwriting capacity of the LLVs is £2.0 million (this compares with HUW's 2015 capacity of £24.7 million prior to these acquisitions) and their combined unaudited profit before tax for the year ended 31 December 2014 is £0.18m. The vendor of the LLVs is Will Roseff; he currently holds 1,168,969 ordinary shares in the Company (representing 12.9% of the Company's issued share capital) and his holding would increase to 2,623,504 ordinary shares (representing 25.0% of the Company's enlarged issued share capital) if the acquisitions proceed to completion on the terms set out above. The acquisitions are subjectinter alia to the entering of binding sale and purchase agreements which would themselves be subject to change of control consent from Lloyd's.