An entity controlled and owned by Crescent Capital Partners Management (Crescent Capital) intends to make an all-cash offer to purchase the ordinary shares in Clearview Wealth at a price of 50 cents per share.
In a statement to the Australian Securities Exchange (ASX) today, CCP BidCo Pty Limited said the offer price represents an "8 per cent premium to the volume weighted average price of Clearview shares over the last three months".
The offer also represents an 11 per cent premium to the current disclosed value of Guinness Peat Group's shares in the company. GPG is Clearview's largest shareholder with a 48 per cent stake, the statement said.
"If the offer is successful, Clearview shares acquired by CCP BidCo under the offer will be transferred in various proportions to be held directly by funds advised by Crescent Capital," it said.
Crescent Capital managing partner Michael Alscher said the $220 million offer provides Clearview shareholders the opportunities to sell some or all of their holdings "at a premium in a company that has low historical trading volumes and liquidity".
"We have a strong track record in growing businesses and we are keen to work with Clearview's current management," Alscher said.
"Our focus will be to accelerate the growth of the business. As a committed shareholder, we are confident we can help Clearview grow its market share and become a more substantial provider of life insurance and wealth management solutions to the market."
Alscher said the offer also provides GPG with the opportunity to "realise its investment" in the company at a premium above its book value.
The offer will be funded through arrangements with Crescent advised parties, Investec Bank Australia and other counterparties, the statement said.
"CCP BidCo intends to deliver its Bidder's Statement to ASIC, Clearview and the ASX today, and intends to despatch the relevant documentation to Clearview shareholder as soon as possible, which is intended to be at the end of the week commencing 23 July 2012," it said.
Crescent Capital was founded in 2000 and is an Australian private equity investment firm which has raised more than $1 billion in committed capital across all its funds, the statement added.
