Lombard reverse takeover succeeds

Lombard Group is the parent of the failed Lombard Finance. Photo / Supplied

Perth-based insurer Australian Consolidated Insurance (ACIL) has succeeded in a reverse takeover bid for Lombard Group, the parent of failed Lombard Finance.

By the offer's close at 5pm on Monday, the rebranded Lombard Insured Group had obtained 95.28 per cent of ACIL's shares, making the offer unconditional.

As a result, Lombard directors Michael Reeves and David Wallace have resigned.

Insured Group will compulsorily acquire the remaining ACIL shares.

The new entity has also become an Australian incorporated company.

ACIL is an insurance broking and underwriting agency which purchased Hamilton underwriter Classic Cover Insurance in June last year.

It manages over A$80 million ($103 million) of insurance premiums from offices in Perth, Sydney, Melbourne, Brisbane, Auckland and Hamilton.

Under the reverse takeover deal, Lombard made a takeover offer to ACIL shareholders for all ACIL's 42.8 million shares, offering 1.48 billion new shares in Lombard as consideration for the ACIL shares, or 34.6 Lombard shares for each ACIL share.

Lombard Finance was put into receivership in April 2008, owing $127 million to about 4400 investors.

The Securities Commission said yesterday it had issued civil proceedings against Reeves, Laurie Bryant, Sir Douglas Graham and Bill Jeffries relating to the failure of Lombard Finance.

- NZPA