Ann: ENA signs non-binding agreement to sell its UK operations, page-2

"Ensurance signs non-binding agreement to sell its UK operations for A$8.2m
Sale aimed at enabling Ensurance to capitalise on its significant growth opportunities in the Australian market

Ensurance Ltd (ASX: ENA)
(Ensurance or the Company) is pleased to advise that it has entered into a nonbinding agreement to sell its UK operations to ASX-listed PSC Insurance Group Ltd (ASX: PSI) (PSC) for A$8.2 million.
Under the agreement, which remains subject to execution of a binding sale and purchase agreement, due diligence and other conditions precedent, PSC will pay A$6.15m in cash and the balance of A$2.05m in PSC shares (to be held in escrow for a period of 12 months) for the acquisition of 100% of the issued share capital of Ensurance UK Ltd (Ensurance UK) by PSC or a related party of PSC.
A summary of the key terms and conditions of the agreement is set out in the Appendix to this announcement. Ensurance and PSC aim to execute transaction documentation by July 31, 2022.
Completion will be subject to usual closing conditions, the most material of which will be approval by the Financial Conduct Authority (UK). The Company will keep shareholders informed on the progression of the transaction.
Ensurance CEO, Tom Kent, said the decision to sell Ensurance UK was made in light of the immense growth opportunities in the Australian market. “Our Australian business is expanding rapidly and we believe there is much more growth to come,” Mr Kent said. “We now have a national network of offices and the demand for our specialised insurance offerings, which are backed by leading underwriters, continues to increase. “We have taken the strategic decision to redeploy the capital from the sale of the UK operations into our Australian business to ensure we can take full advantage of these growth opportunities.
We are excited to be carrying out this transaction with the PSC Group, who we value as a key distribution partner of ours in Australia.”
Ensurance’s business model is based on being an insurance agency which utilises underwriting agreements with leading insurers, meaning it can offer high-quality products while being nimble and opportunistic. This strategy enables it to offer much-needed insurance products, retaining a percentage of the premium but not carrying the underwriting risk."