NU Online News Service, July 5, 12:12 p.m. EDT
Jardine Lloyd Thompson Group plc (JLT) says it has acquired an initial 50.1 percent interest in the share capital of Alta SA, holder of a major insurance brokerage firm in Chile.
JLT says that Alta is the holding company of Orbital Corredores de Seguros, the fourth-largest insurance broker in Chile, and Alta Re, a reinsurance broker which commenced operations in April 2010.
The transaction includes an option to acquire an additional 25 percent in 2020.
Alta has been a member of the JLT International Network since 2010. Alta generated net revenue of $8.1 million in 2010 and produced a profit before taxation of $3.4 million, JLT says.
JLT adds that the acquisition remains subject to contract and any necessary regulatory approvals.
The broker says it anticipates that it will initially acquire 50.1 percent of the company from purchasing shares from the management of Alta, which is led by CEO Jose Ignacio Lathrop and Federico Tagle, the firm's chairman. Both executives will continue in their existing roles after the proposed transaction has been completed.
It is anticipated the transaction will be finalized during the second half of 2011.
In a statement Lathrop comments, "This extension of our excellent relationship with JLT will provide our clients with enhanced access to international markets, experience and specialty skills. We see this deal as beneficial to our clients and our employees."
Vyvienne Wade, CEO of JLT's Latin American operations, says, "This acquisition continues JLT's drive to expand its Latin American businesses following a strong performance in 2010. Chile is a well-established insurance and employee-benefits market, and this acquisition will add to our presence in the region where we already have majority-owned operations in Brazil, Colombia and Peru."
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