Willis receives more Gryphon deal cash
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.WILLIS CORROON, the insurance broking group, received a second payment yesterday of pounds 5.1m from the sale of its stake in Gryphon Holdings, its US insurance business, as the underwriters to the offer exercised their options in order to satisfy demand for the shares, writes John Willcock.
Willis received a first payment of pounds 33m when it floated off its 55 per cent stake in Gryphon in the US and Canada last month.
The further payment came from the underwriters of the public offering - Smith Barney Shearson, Goldman Sachs and Lehman Brothers - which exercised their options over 8.3 per cent of Gryphon's capital.
The underwriters exercised their options at the initial public offering price of dollars 13 per share to cover over-allotments.
Willis's interest in Gryphon's issued ordinary shares is now reduced to 36.1 per cent.
Gryphon consists of two underwriting businesses, the Los Angeles-based Associated International Insurance Company and Calvert in Pennsylvania. They provide specialist cover for small and medium-sized companies.
Willis said at the time of the offering that it was pleased to get the sale away. The US insurance sector has underperformed badly recently and several insurers have had to cancel planned share offers.
The company is planning to use the proceeds of the sale to reduce its debt burden, which has been a heavy drag on its performance. Gross debt was recently put at pounds 163m.
Willis Corroon's shares finished the day unchanged at 229p.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments