An under-the-radar ASX All Ords stock is doing more than its share of the heavy lifting today.
On Thursday, the All Ordinaries Index (ASX: XAO) was down 0.8% in early afternoon trade.
But shares in ASX All Ords diversified insurance services company PSC Insurance Group Ltd (ASX: PSI) are heading the other way, up 4.9% to $6.02 a piece.
That sees the PSC Insurance share price up an impressive 36% over the past six months.
Investors are snapping up the stock after long-simmering takeover rumors were confirmed.
ASX All Ords insurers dream on takeover deal
After the market closed yesterday, PSC Insurance reported that it had entered into a binding Scheme Implementation Deed with The Ardonagh Group.
Under the scheme, Ardonagh, one of the world’s leading independent insurance broking groups, will acquire all of PSC’s shares for $6.19 a piece.
That’s still 2.8% above where the ASX All Ords stock is trading at the time of writing.
And it represents an implied equity value of $2.26 billion.
The PSC board unanimously recommended shareholders of the ASX All Ords company vote in favor of the scheme.
The board said it believed merging with Ardonagh was a “complementary fit” for its businesses, calling the proposed acquisition “a transformational step in contributing to the creation of an impactful global broking group.”
Founded in 2017, Ardonagh is now a top 20 global broker with more than 10,000 employees across 30 countries. The company reported 2023 revenue of £1.6 billion (AU$3.0 billion).
What did management say?
Commenting on the proposed takeover sending the ASX All Ords stock sharply higher today, Paul Dwyer, non-executive chairman of PSC Insurance, said:
Today marks an important day in PSC’s history. This transaction recognizes the quality and strength of PSC’s people and business that has developed over the last 18 years.
We believe this transaction maximizes value for PSC shareholders while also providing an excellent platform for growth for PSC employees and clients.
David Ross, CEO of The Ardonagh Group, added:
The acquisition, which has secured the unanimous recommendation of PSC’s board, is a significant milestone in the global growth of Ardonagh and underlines our strong commitment to the markets we serve.
Ardonagh has been assembled as a bastion of independence and scale, aligning high caliber businesses and management teams around quality advice for clients and entrepreneurial connectivity within the group.
PSC’s journey and values align with our own and its portfolio of highly complementary businesses provides an abundance of opportunity to strengthen our positions in Australia and wholesale and specialty markets.
The takeover deal lifting the ASX All Ords assures today still requires shareholder and court approval before moving forward.
Stay tuned.
