Permira mulls bid for Just Retirement

The mega-firm confirmed today it may purchase a majority stake in the London-listed life assurance company.

Permira has confirmed it may bid 76 pence per share for a majority stake in Just Retirement, a provider of retirement-focused financial instruments like enhanced annuities and equity release products. The price currently values the company at £225 million.

A deal has been in the works since November, according to a statement from Just Retirement, and if approved would mark Permira’s first financial services deal since putting a dedicated FIG team in place last year.

Just Retirement said if Permira delivers a “firm proposal” by 20 August and its board fails to recommend the offer within three days or selects a third-party bid, Permira is entitled to a £2.3 million break-up fee.

Neither firm mentions a reverse break-up fee in its statement today. However, Permira said it has reserved the right to alter its offer terms – including “the mode of implementation, the form and/or mix of consideration and offer value” – so long as any offer below 76 pence per share is agreed with Just Retirement’s board.

An offer is contingent upon completion of due diligence.

At press time, the company was trading at just over 70 pence per share, up nearly 10 percent from its opening price, and giving it a market capitalisation of £210 million.

Credit Suisse is advising Permira, while Deutsche Bank is advising Just Retirement.