Marsh & McLennan said on Tuesday that it reached a deal to acquire Jardine Lloyd Thompson for US$5.6 billion, or 19.15 British pounds a share, a 33.7 percent premium to the closing price on Monday.
In a separate statement on Tuesday, Jardine Matheson noted that it holds 40.16 percent of Jardine Lloyd Thompson, which is an insurance and employee benefits adviser, and that it expected to generate net proceeds of around 1.7 billion pounds, or around US$2.2 billion for the Jardines.
“Jardines has given an irrevocable undertaking to support the offer,” it said in a filing to SGX on Tuesday.
“Jardines has been a long-term shareholder and supporter of JLT and has played an important part in its success, by ensuring ownership stability and, particularly in Asia, by directly supporting the growth of JLT’s business,” it said.
“Over the past 20 years, the management of JLT have successfully created one of the leading global specialist risk advisers and brokers, generating strong returns for all shareholders. The combination of JLT with Marsh is expected to enhance the ability to accelerate the growth of the two businesses across products, segments and geographies,” Jardine Matheson said.
It said the proceeds of the sale of the Jardines’ shareholding would allow them “additional flexibility” when investment opportunities in core sectors and geographies arise.
It noted that the transaction was expected to close in “spring” of 2019.