Established in 1997, the Tesco banking business employs thousands of staff in Edinburgh, Glasgow and Newcastle.
Established in 1997, the Tesco banking business employs thousands of staff in Edinburgh, Glasgow and Newcastle.

Edinburgh-based Tesco Bank’s chief executive Gerry Mallon described the acquisition of Ageas’s holding in Tesco Underwriting as a “significant step” in the financial division’s development.

Tesco Bank will acquire Ageas’s 50.1 per cent stake in the underwriting joint venture for a total of £104 million plus Ageas’s part of any change in net asset value realised by Tesco Underwriting from 30 June until closing of the deal. In addition, Ageas will receive a reimbursement of an internal loan for an amount of £21m.

The bank said all parties would work closely “to ensure a smooth transition” ahead of the formal change in control, which is expected to take place in the second quarter of 2021.

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Bosses said the partnership had been valuable for both Tesco Bank and Ageas since the joint venture was established ten years ago, underwriting Tesco Bank-branded car and home insurance policies that have “proved popular with customers”. In 2014, the partnership was extended for a further seven years, to 2021.

The bank added: “This investment is in line with Tesco Bank’s strategy of focusing on propositions which better meet the needs of Tesco shoppers, and builds on the unique offering insurance customers already benefit from as part of the wider Tesco family, such as the guaranteed Clubcard discount.”

Ageas is to focus on developing its core business and broker distribution channel.

Mallon said: “[This] announcement is a significant step in Tesco Bank’s development which underlines our commitment to the insurance market and our customers.

“We look forward to doing more of what we know our customers want – offering products that have a strong emphasis on value,

FILE PHOTO: Calin Rovinescu, CEO of Air Canada speaks during a panel discussion on Cyber Security at the 2016 International Air Transport Association (IATA) Annual General Meeting (AGM) and World Air Transport Summit in Dublin, Ireland June 3, 2016. REUTERS/Clodagh Kilcoyne/File Photo

(Reuters) – Air Canada AC.TO has slashed its price to buy Canadian tour operator Transat A.T. Inc TRZ.TO, with the deal now worth about C$188.7 million ($143.86 million), down from C$720 million, as COVID-19 weighs on travel demand, the companies said in a statement on Saturday.

The country’s largest carrier had secured Transat shareholders’ approval for the deal last year with an C$18.00 a share bid, to bolster its then thriving leisure business.

But with the pandemic grounding flights globally, Air Canada faced shareholder pressure to renegotiate the deal which is still pending approval from European and Canadian regulators, Reuters reported in May.

Montreal-based Air Canada, like many of its global peers, has slashed flights, suspended financial forecasts and sought government aid as the industry deals with its worst slump.

Companies have been cancelling deals amid COVID-19 uncertainty, with aircraft parts suppliers Hexcel Corp HXL.N and Woodward Inc WWD.O abandoning their planned $6.4 billion all-stock merger in April.

Under revised terms of the deal, Air Canada said it will acquire all shares of Transat for C$5 per share, representing a premium of about 30.5% to Transat’s last close on Friday.

“Air Canada intends to complete its acquisition of Transat, at a reduced price and on modified terms,” said Calin Rovinescu, the carrier’s chief executive officer, in a statement.

“Consummating the initial deal at $18.00 was not an option that was viable given the full set of circumstances the Corporation is facing,” Jean-Yves Leblanc, chair of the special committee of the board of Transat said in a statement.

(Reuters) – Air Canada

has slashed its price to buy Canadian tour operator Transat A.T. Inc
, with the deal now worth about C$188.7 million ($143.86 million), down from C$720 million, as COVID-19 weighs on travel demand, the companies said in a statement on Saturday.

The country’s largest carrier had secured Transat shareholders’ approval for the deal last year with an C$18.00 a share bid, to bolster its then thriving leisure business.

But with the pandemic grounding flights globally, Air Canada faced shareholder pressure to renegotiate the deal which is still pending approval from European and Canadian regulators, Reuters reported in May.

Montreal-based Air Canada, like many of its global peers, has slashed flights, suspended financial forecasts and sought government aid as the industry deals with its worst slump.

Companies have been cancelling deals amid COVID-19 uncertainty, with aircraft parts suppliers Hexcel Corp

and Woodward Inc

abandoning their planned $6.4 billion all-stock merger in April.

Under revised terms of the deal, Air Canada said it will acquire all shares of Transat for C$5 per share, representing a premium of about 30.5% to Transat’s last close on Friday.

“Air Canada intends to complete its acquisition of Transat, at a reduced price and on modified terms,” said Calin Rovinescu, the carrier’s chief executive officer, in a statement.

“Consummating the initial deal at $18.00 was not an option that was viable given the full set of circumstances the Corporation is facing,” Jean-Yves Leblanc, chair of the special committee of the board of Transat said in a statement.

As part of the deal, Transat has also secured a new C$250 million short-term loan facility, Transat said.

(Reporting by Bhargav Acharya in Bengaluru and Allison Lampert in Montreal; Editing by Marguerita Choy)

Copyright 2020 Thomson Reuters.

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BancorpSouth Bank BXS recently announced the acquisition of the assets of Alexander & Sanders Insurance Agency, Inc. The company completed the deal through its subsidiary, BXS Insurance, Inc. The terms of deal have not been disclosed yet.

The Baton Rouge, LA-based Alexander & Sanders Insurance is a provider of risk management and insurance services to professional firms across Louisiana over the past few decades. Post the acquisition’s closure, Alexander & SandersInsurance will continue its operations from BXS Insurance’s Baton Rouge, LA office.

Markham McKnight, president and chief executive officer of BXS Insurance said, “This transaction allows us to add talented leaders and teammates to our team and provides a unique opportunity to enhance our construction practice within Louisiana and across BXS Insurance’s footprint.”

Aided by its solid liquidity position, BancorpSouth has been making strategic investments through mergers and acquisitions (M&As). In recent years, the company has maintained an acquisition spree, fortifying its footprint in various areas. In January 2020, the company completed the acquisition of Texas First Bancshares, and expanded presence geographically, while in September 2019, it completed its mergers with Van Alstyne Financial Corporation and Summit Financial Enterprises. Moreover, the company looks forward to tap similar opportunities in the future as well.

Shares of this Zacks Rank #3 (Hold) company have depreciated 18.8% over the past year compared with the industry’s decline of 20.2%. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

So far this year, consolidations in the banking sector have been few and far between, as the pandemic and the resultant economic slowdown have put brakes on the same. Nonetheless, a few notable deals this year include CapStar Financial Holdings, Inc.’s CSTR merger with Tennessee-based FCB Corporation, and First Horizon National Corporation FHN and IBERIABANK Corporation’s all-stock merger of

Adds details from statement, background

Oct 8 (Reuters)TalkTalk TALK.L said on Thursday it has received a preliminary offer from its third-largest investor, Toscafund Asset Management, to take the British broadband operator private for 97 pence per share, a 16.4% premium to its last closing price.

The company said while the board has decided to discuss the proposal with its advisers, Toscafund has to get the support of the second-biggest shareholder and TalkTalk Chairman Charles Dunstone to make any firm bid.

Dunstone owns a 29.86% stake in TalkTalk, while Toscafund holds 29.09%, according to Refinitiv Eikon data. The proposal values TalkTalk at 1.12 billion pounds ($1.45 billion), according to Reuters calculations.

Shares of TalkTalk jumped 17% to the top of London’s midcap index .FTMC in early deals to trade closer to the offer price, indicating the market’s approval.

Sky News had reported in July the British company had rejected a 135 pence per share offer from Toscafund last year.

Barclays Bank and Deutsche Bank are TalkTalk’s advisers.

($1 = 0.7721 pounds)

(Reporting by Pushkala Aripaka in Bengaluru; Editing by Arun Koyyur)

(([email protected]; Twitter: @pullthekart; within UK: +44 20 7542 1810, outside UK: +91 80 6182 2600; Mobile: +91 852 751 3793 ;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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