Insurance broker Hub International Limited said its shareholders yesterday approved a $1.6 billion plan for two private equity firms to purchase the company and take it private.
The Chicago-based broker said shareholders voted to approve the plan that would allow the private equity groups Apax Partners and Morgan Stanley Principal Investments to acquire all of Hub's common shares for $41.50 per share in cash.
The offer was increased in March from the original price of $40 per share. The deal is estimated to be worth more than $1.6 billion.
A hearing on the plan is scheduled for today in Ontario Superior Court of Justice in Canada. Hub is traded on both the New York Stock Exchange and the Toronto Stock Exchange. If the court approves the plan and all closing condition are met, Hub said it expects the deal to close by or around June 13.
Earlier this year, another major brokerage firm, USI, based in Briarcliff Manor, N.Y., completed a deal with the private equity firm GS Capital Partners Corporation, which took the firm private. That deal was estimated to be worth around $1.4 billion.
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