Advisers tell IL&P to hold off on Quinn move prior to flotation
Published 08/06/2011 | 05:00
IRISH Life & Permanent's advisers have urged the bancassurer to hold off on the purchase of Quinn Healthcare until after the sale of Irish Life Assurance later this year.
The news comes months after IL&P was tipped as the preferred bidder for Quinn Health, which sits outside the deal done by Anglo Irish Bank and Liberty Mutual to buy Quinn Insurance.
Sources have confirmed, however, that while IL&P is "definitely" buying Quinn Healthcare, a deal could be delayed until the fourth quarter.
The healthcare business will sit into Irish Life Assurance (ILA), which is being offered up for sale as a 'self-help' measure to help IL&P reach a €3.6bn capital target imposed by the Central Bank.
IL&P's advisers have told the PLC that the sale of ILA could be "complicated" by a contingent deal to buy Quinn Healthcare, particularly given the relatively values of IL&P and the health deal.
After a spectacular share price collapse, IL&P's market capitalisation is now less than €26m. The Quinn Health play is a €100m deal, believed to be made up of a purchase price to Quinn Health's owners, plus an injection of cash into the healthcare business.
News of the health process comes as IL&P bosses intensify efforts to sell off their life assurance subsidiary.
A mini-prospectus is expected to be drawn up over the coming weeks to whet the appetite of potential trade buyers, including locally active Axa, Allianz and Zurich.