ClearView has issued a formal statement to its shareholders asking them to reject the offer made by CCP BidCo last month.
In July 2012, CCP BidCo, a subsidiary of private equity manager Crescent Capital Partners Management, made an unsolicited approach to ClearView’s shareholders, offering them $0.50 per share for the business.
ClearView’s Directors unanimously voted to reject the offer, and the group has now issued a formal statement to shareholders detailing the reasons behind this decision.
Specifically, ClearView told shareholders it was delivering on its stated strategy, citing significant growth in its retail life insurance offer, LifeSolutions, and the recruitment of experienced advisers and distribution partners as key to its success.
‘ClearView has laid the foundation for growth. As an example, life sales in 4QFY12 were 751% greater than 4QFY11,’ the group said in its message to shareholders.
The statement included the results of an independent expert’s review, conducted by KPMG Corporate Finance, which found that the offer was not fair or reasonable.
At the same time, ClearView has released its full year results for the period ending 30 June 2012, reporting an underlying profit after tax of $19.2 million. The group said the result ‘…reflected favourable insurance claims experience that was partially offset by insurance lapse losses (albeit with a significant improvement in the second half)’.
Speaking about the results, ClearView Managing Director, Simon Swanson, said: “In a weak and volatile market with hesitant investor sentiment, ClearView’s result is a solid one. The investment in developing our life and wealth product suites will deliver enhanced sales growth in the years ahead, as is already being evidenced.”
