Shareholders approve CBG sale

THE shareholders of Manchester-based insurance broker CBG Group have approved a £5.1m takeover approach for the business by Glasgow-based Giles Insurance Brokers.

The approach, which had been recommended by CBG’s board, valued the company at 32p per share, which represented a 54.2% premium on the value of the shares on the day before the offer was announced.

Both CBG and Giles Group had created business models based on them becoming consolidators in the insurance broking market, but raising money to achieve this has proved to be easier for Giles, which is backed by London-based private equity firm Charterhouse Capital.

Speaking as the CBG board recommended its approval earlier this month, CBG chairman Robin Slinger said: “The opportunity to become part of the Giles operation will inevitably provide significant growth potential for CBG in the coming years.”