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LV Boss Faces Backlash Over £ 530m Sale To Private Equity

LV bosses are wondering about the plunge from the £ 530m sale to private-equity giant Bain.

LV bosses are asked to clean up the money they are standing to make after agreeing to sell the 178-year-old insurance company to private-equity funds.

CEO Mark Hartigan remained blushing after the abominable report of the £ 530m acquisition by US giant Bain Capital questioned his motives.

Campaigners, MPs, and industry experts have accused LV management of “selling the heritage in the river” and pressured management to reveal how they would benefit. I am.

Sold Out: LV = CEO Mark Hartigan (pictured) remains blushing after a disgusting report on the £ 530m acquisition by US giant Bain Capital cast doubt on his motives. Was

Originally known as Liverpool Victoria, it was founded in 1843 to give poor Liverpool people the opportunity to hold funerals for their loved ones.

But shortly after taking charge in 2019, Hartigan started the sales process, even though the members of the company had enough money to continue on their own and reassured each other to survive. ..

In Bane’s deal, if a majority of LV members vote in favor of a bid later this year, LV will abandon each other’s status and transfer profits to private-equity fund owners.

James Daily of Fairer Finance, a research and rating agency, said:

An LV spokesman said Bain’s £ 530m payment would not be received by the company’s management and would instead be split into LV’s 1.3 million members.

However, if it continues after the acquisition, ownership of private-equity funds could offer significant rewards in the future.

In the transaction report, the All-Party Parliamentary Group on Mutual Organizations (APPG) said: ‘Bain is clearly interested in profiting from acquisitions through the implementation of management’s business plans.

Executives may also benefit from the associated increased compensation and incentives, and retiring directors may be expected to be compensated for their loss of employment.

Rewards for Bain and leaders can reduce payments to members.

The report called for the Competitive Markets Department to scrutinize the transaction. Industry sources remained confused when LV plunged into a deal with Bain last year. In particular, Royal London, the UK’s largest mutual company, has made its own offer to insurance companies.

However, this was shunned by LV’s board of directors, who changed their tone about the company’s outlook. Despite recently selling LV’s non-life insurance division to Allianz for over £ 1 billion, they began to say that the company did not have enough capital to sustain its future without further cash injections. ..

In the transaction report, APPG casts doubt on these claims.

The MP states: ‘On the other hand, both before and after the contract with Allianz was signed [LV] He said it is a well-capitalized business, but on the other hand, it cannot raise sufficient mutual capital to continue trading independently. Both statements cannot be correct. “

An LV spokesman said: “It is always clear to members that strategic reviews with Bain Capital and subsequent proposed deals are driven solely by their long-term interests.”

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LV Boss Faces Backlash Over £ 530m Sale To Private Equity

Source link LV Boss Faces Backlash Over £ 530m Sale To Private Equity

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