Merger victory for Redwood

REDWOOD yesterday said its merger offer for rival Lloyd's insurance underwriter New London Capital had been declared unconditional following overwhelming acceptances from shareholders. The company said it had received the backing of shareholders representing 91.0 per cent of New London's share capital by the first closing date of the offer on 30 December. The merger was approved by Ockham shareholders at an extraordinary general meeting the same day. Under the deal, announced earlier this month, New London shareholders will receive new Ockham shares accounting for 57 per cent of the enlarged share capital of Ockham. Ockham is offering six new shares and 10p for every five New London shares held.

Separately, Redwood group said it had acceptances from shareholders representing over 83 per cent of Glasgow-based engineering firm Clyde Blowers by 30 December. Redwood announced an agreed bid of 165p cash per share for Clyde last month, valuing the company at around pounds 24.5m.