Tawa plc ("Tawa") today announced that it has entered into a share purchase
agreement to acquire Hamburger Internationale Ruckversicherung ("HIR"), the
holding company for the Chiltington Group of companies ("Chiltington").
The purchase of HIR includes Chiltington, which provides consultancy and
outsource services to the international (re)insurance industry. Chiltington
specialises in compliance, audit and investigation work, litigation support,
restructuring services, claims management and commutations
Tawa has agreed to acquire 100% of HIR for a combination of cash, deferred
consideration and through the issue of 3 million new ordinary Tawa shares of
10 pence par value each. An application has been made for the 3 million
shares to be admitted to trading on AIM and dealings are expected to
commence following a 5 year lock-up period.
After making allowances for fair value adjustments, Tawa anticipates that
the acquisition will have minimal impact on Tawa's net assets.
The transaction will provide Tawa with a stronghold in Continental Europe
along with a platform in the growing South American market. Chiltington and
Tawa's insurance service provider, Pro, have complementary operations in
both the UK and US that will generate operational synergies, and provide
broader resources and skill base in order to service the existing, and new
clients, of the combined entity.
The transaction is expected to be completed over the next 90 days and is
subject to the usual closing conditions including regulatory approvals.
Gilles Erulin, Chief Executive Officer of Tawa, comments: " "We are
delighted that the Chiltington team are joining the Tawa group. They are
very experienced and well connected in the international insurance market.
It is our view that they are the most respected continental consulting group
in our line of business. While strengthening our UK and US units, this
transaction provides a strong footprint in Continental Europe and a unique
platform of Insurance consulting in South America. This comes at a time
when consistent growth is being experienced in both areas".
Wolfgang Eilers, CEO of Chiltington, comments: "HIR/Chiltington Group has
had tremendous success since Chiltington's formation in 1982. However, to
remain at the forefront of (re)insurance consultancy, we have decided the
time is right to team with a bigger partner. By joining a first class
organisation such as Tawa, we have a wonderful opportunity to expand our
range of services to new and existing clients. This deal is about increased
growth with our enlarged consulting resources being able to offer our
clients a wider product range".
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