Hansa and Ocean Wilson deal inches closer
The directors of Hansa Investment Company and Ocean Wilsons Holdings Limited have reached preliminary agreement on the key terms of a possible all-share combination, under which Hansa would acquire the entire issued, and to be issued, share capital of Ocean Wilsons.
If finalised, Ocean Wilsons shareholders would be entitled to receive voting ordinary shares and non-voting ‘A’ ordinary shares in Hansa, on the basis of an exchange ratio to be determined by reference to the relative valuation of Hansa’s and Ocean Wilsons’ adjusted net assets.
The pact moved closer to reality after the companies agreed they could create an investment company with total net assets in excess of £900 million (approximately $1.21 billion) under a simplified group structure.
It would be of meaningful scale with a diversified, global portfolio of investment funds, direct equities and private assets, which both boards believe would create a strong platform for long-term value creation. Shareholders would be able to realise the benefits and synergies of greater scale, including through a reduced blended management fee rate.
In a filing with the Bermuda Stock Exchange, a joint statement of the two companies summarised the benefits of scale, liquidity, reduced management fee rates, cost efficiencies and a simplification of the group structure.
Chair of Hansa, Jonathan Davie commented: “The possible combination would represent a significant milestone in Hansa’s long history. Hansa first invested in Ocean Wilsons in 1958, and over the period since its initial investment, Ocean Wilsons has delivered attractive total returns for Hansa shareholders.
“The sale of Wilson Sons has provided the opportunity for the possible combination which, if it were to proceed, would enable Hansa to generate an uplift in the carrying value of Ocean Wilsons by reporting it at net asset value, and create a simplified investment proposition for Hansa shareholders with increased scale that we believe will broaden the appeal of Hansa.”
Chair of Ocean Wilsons, Caroline Foulger commented: “Having assessed the strategic options available to us to maximise shareholder value, the independent directors of Ocean Wilsons have concluded that the possible combination with Hansa is in the best long-term interests of Ocean Wilsons and its shareholders who are seeking to continue to gain exposure to its diversified portfolio of global public and private investments.
“We are excited by the possible combination which will create a differentiated investment company with a diversified, global portfolio.”
• For more information on the joint statement, see Related Media
You must be Registered or to post comment or to vote.
