Monday June 16, 10:10 AM
Culver sells retail insurance broking arm
LONDON (ShareCast) - Shares in holding company Culver Holdings surged Monday morning after it announced the disposal of its retail insurance broking susbidiary. Culver is to sell Culver Insurance Brokers (CIB) for £4m plus adjusted
net assets when finally determined, less estimated intra-group balance of £1.75m, to a subsidiary of Cullum Capital Ventures Limited.A further, deferred, consideration of up to £2m may be paid depending on the performance of the sold unit. The funds from the disposal will be used to repay short-term borrowings of just under £2m, with the remainder to be used to fund further development of Culver’s specialist insurance broking and employee benefits businesses. In 2007 CIB made a profit before tax of £52,000 on revenue of £2.14m, and at the end of the year had gross assets of £5.7m and net assets of £1.4m. The deal includes a “non-compete” clause covering a three-year period. Commenting on current trading, the company said the development of the income of the wholesale and specialist businesses remains slower than expected by the board, while the Employee Benefits business is currently loss making, with income ahead of last year but not by as much as expected.
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