PSC trims BP Marsh stake following Ardonagh takeover

By Ryan Hewlett

May 9 - PSC Insurance Group is to offload part of its near 20% shareholding in London-listed venture capital investor BP Marsh in an accelerated process which comes shortly after the Australian intermediary was acquired by private equity backed Ardonagh Group.

• Australian intermediary PSC acquired 19.9% of BP Marsh in 2018

• Ardonagh completed A$2.3 billion deal for PSC in October 2024

• Panmure Liberum to manage accelerated bookbuild for PSC

• BP Marsh shares rose more than 58% over 2024

BP Marsh confirmed in a stock exchange filing that PSC UK Pty Ltd, a wholly owned subsidiary of the Ardonagh Group, intends to sell approximately 1.6 million ordinary shares in the specialist investor at a price of 630 pence per share.

The shares, which represent about 4.3% of BP Marsh’s issued share capital, are being offered to institutional investors via an accelerated bookbuild which will be launched immediately.

PSC UK Pty Ltd currently owns 7,385,504 ordinary shares representing approximately 19.9% of BP Marsh's issued share capital, excluding treasury shares.

Australia-based PSC first acquired an almost 20% stake in the venture capital firm in June 2018 and the decision to offload a portion of its shareholding comes shortly after Ardonagh completed its A$2.3 billion acquisition of PSC in October last year.

The landmark deal handed the private equity backed consolidator a major insurance distribution platform in Australia and New Zealand and saw PSC’s operations in the region combined with Envest Group, Ardonagh’s existing platform in the territory.

More recently, Ardonagh in December landed an investment from private equity firm Stone Point Capital valuing the UK broker consolidator at $14 billion (£11 billion). The deal saw Stone Point take a "significant stake" in the group alongside Madison Dearborn Partners, with HPS Investment Partners also continuing to hold a minority investment.

BP Marsh said the final number of shares to be placed will be agreed by Panmure Liberum and the PSC at the close of the bookbuild process. BP Marsh is not a party to the placing and will not receive any proceeds from the Placing.

As part of the deal, PSC will not dispose of any further BP Marsh shares for a period of 60 days following completion of the placing, subject to certain exceptions and waiver by Panmure Liberum.

BP Marsh owns stakes in several intermediaries including Pantheon Specialty, ATC and Verve.

The investor announced plans last month to pay a special return to shareholders following the receipt of further cash proceeds from the successful sale of its shareholding in Paladin, the parent of Lloyd’s intermediary CBC, to private equity-backed Specialist Risk Group.

Shares in BP Marsh, listed on the AIM segment of the London Stock Exchange, rose more than 58% over 2024 and are currently trading at 656.90 pence apiece, handing the firm a market capitalisation of 243.66 million pounds.

BP Marsh is forecast to report results for the year to January 31, 2025 on June 10.