Chairman of the All-Party Parliamentary Group (APPG) for Mutuals Gareth Thomas has written to the Financial Conduct Authority (FCA) demanding details on the acquisition of LV= by US private equity firm Bain Capital for £530m ($716m, €620m).
International Adviser recently reported that rival insurance provider Royal London was looking to resurrect its bid for the British mutual if its members voted against the private equity takeover.
But Thomas and his fellow members of parliament (MPs) have requested information regarding the offer made by Royal London as it would have kept LV=’s mutual status, reported British newspaper The Daily Mail.
They also asked the FCA if it knows what potential rewards will be offered to LV=’s bosses by Bain Capital.
The APPG also wanted to know whether Royal London offered more money than Bain to acquire the insurer, as it was reported its bid was £10m higher than the private equity firm’s. It is also believed that LV=’s 340,000 members initially preferred the insurer’s offer and turned down the one submitted by Bain Capital.
Letter
According to the British newspaper, the letter said: “It is now clear that the two most valuable bids received by the [LV=] board were from Bain Capital and crucially, another mutual, Royal London.
“Will you confirm what many have explicitly suggested; that Royal London offered more money than Bain Capital?”
IA contacted the FCA for comment, but the regulator did not reply in time for publication.
This is the latest backlash the Bain Capital deal has attracted, following resistance by the AAPG and other members of parliament after it was announced in December 2020.
