Advisers to Towergate insurance chief are in a race against time to complete a £100m sale before the CGT change
Accountancy Age, 04 Apr 2008
Insurance operator Peter Cullum is in advanced talks to sell a stake in his company to US hedge fund Och-Ziff in a deal which could make him £70m.
Towergate, Cullum's insurance underwriter and broker, has reportedly been valued at about £3bn, The Daily Telegraph reports. But advisers are in a race against time to sew up the deal before the change in capital gains tax this weekend.
If a deal is done, Och-Ziff will own about £100m worth of preference shares in Towergate, which could bring Cullum an estimated £70m. However, one person familiar with the matter warned the deal was on ‘a knife edge’, according to The Daily Telegraph.
‘There are still significant hurdles - such as tax, regulatory and banking issues - to overcome before this weekend's looming deadline,’ the executive said.
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