Hastings the car insurance company have agreed to a £1.7bn takeover by a consortium involving their largest shareholder, South Africa’s Rand Merchant International, and Finnish insurer Sampo.
The cash offer will see shareholders being given 250p per share along with an interim dividend of 4.5p per share.
The deal needs to be approved by the company shareholders, but the board have agreed to the deal.
The insurance company also reported a 31% rise in adjusted operating profits of £78.3m in the first half of 2020.
Toby van der Meer, chief executive officer of Hastings said, “In regards to the business’ performance for the first half of 2020, I am immensely proud of how the Hastings team has adapted and responded to Covid-19 to make sure we continue to do the right thing.
“We have taken support measures and actions amounting to tens of millions of pounds during the pandemic, focused on our colleagues, customers and our local communities.
“We minimised interruption for our customers, with our colleagues able to work and serve customers from home within a few weeks of the government’s lockdown being announced.”