B.P. Marsh Sells Stake in Sterling Insurance Pty Ltd to Increase Holding in ATC
Why we think this is good
The RNS announcement details B.P. Marsh's sale of its approximately 20% stake in Sterling Insurance Pty Ltd to ATC Insurance Solutions Pty Limited, in which B.P. Marsh already holds a 25% stake. The transaction is valued at AU$33.2m (£15.9m) and will increase B.P. Marsh's shareholding in ATC to 27%. This represents a positive outcome for B.P. Marsh, as the sale price is in line with the company's valuation, and the investment in Sterling produced an 8.8% internal rate of return over 12 years. The transaction also allows for strategic consolidation, with the Sterling management team rolling equity into the acquirer ATC. Overall, the news is positive for B.P. Marsh, but does not meet the criteria for a 'Very Good' rating as it is an asset sale rather than a profit upgrade or trading ahead statement.
Key Points
- B.P. Marsh sells its c.20% stake in Sterling Insurance Pty Ltd to ATC Insurance Solutions Pty Limited
- Transaction valued at AU$33.2m (£15.9m), increasing B.P. Marsh's stake in ATC from 25% to 27%
- Sale price in line with B.P. Marsh's valuation, investment produced 8.8% internal rate of return over 12 years
- Allows for strategic consolidation, with Sterling management team rolling equity into ATC
Summary
B.P. Marsh, the specialist investor in early-stage financial services businesses, has announced the sale of its approximately 20% stake in Sterling Insurance Pty Ltd to ATC Insurance Solutions Pty Limited, in which B.P. Marsh already holds a 25% stake. The transaction is valued at AU$33.2m (£15.9m) and will increase B.P. Marsh's shareholding in ATC to 27%. The sale price is in line with B.P. Marsh's most recent valuation, and the investment in Sterling produced an 8.8% internal rate of return over 12 years. The transaction allows for strategic consolidation, with the Sterling management team rolling equity into the acquirer ATC.