Giles risks shareholder anger with no payout warning
Giles has told the class A and B ordinary shareholders in Expectrum that "there are no proceeds available for any payment" following its acquisition by Arthur J. Gallagher (AJG), Insurance Age can reveal.
The consolidator was bought by AJG in a cash deal worth £233m last month and Giles CEO Brendan McManus has now risked upsetting class A and B shareholders by confirming that their shares will not pay out.
In a letter seen by Insurance Age, Giles CEO Brendan McManus warned that the headline price for the sale of Giles only represented the "enterprise value" of the group.
In short, this figure assumes that the business is free of debt, which as McManus stated is "of course, not the case".
He
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