Perth-based insurer Australian Consolidated Insurance (ACIL) has succeeded in a reverse takeover bid for Lombard Group, the parent of failed Lombard Finance.By the offer's close at 5pm yesterday, the rebranded Lombard, Insured Group, had obtained 95.28 pe
Perth-based insurer Australian Consolidated Insurance (ACIL) has succeeded in a reverse takeover bid for Lombard Group, the parent of failed Lombard Finance.
By the offer's close at 5pm yesterday, the rebranded Lombard, Insured Group, had obtained 95.28 percent of ACIL's shares, making the offer unconditional.
As a result, Lombard directors Michael Reeves and David Wallace have resigned their positions.
Insured Group will now compulsorily acquire the remaining ACIL shares.
The new entity has also become an Australian incorporated company.
ACIL is an insurance broking and underwriting agency which purchased Hamilton-based underwriter Classic Cover Insurance Ltd in June last year. It manages over $A80 million ($NZ98 million) of insurance premiums from offices in Perth, Sydney, Melbourne, Brisbane, Auckland and Hamilton.
Under the reverse takeover deal, Lombard made a takeover offer to ACIL shareholders for all ACIL's existing 42.8 million shares, offering 1.48 billion new shares in Lombard as consideration for the ACIL shares, or 34.6 Lombard shares for each ACIL share.
Lombard Finance was put into receivership in April 2008, owing $127 million to about 4400 investors.
The Securities Commission said today it had issued civil proceedings against Mr Reeves, Laurie Bryant, Sir Douglas Graham and Bill Jeffries relating to the collapse of Lombard Finance.
