Just Retirement offer talks extended

Just Retirement, the annuities and equity release specialist, has extended the deadline for a firm offer for the company by private equity bidder Avalon Acquisitions Ltd from 20 August to 25 September 2009.

Avalon, part of the Permira private equity group, had offered around £117m for a 52% share of the company.

Under the terms of the possible offer, shareholders will be able to receive either 76 pence in cash, or an unquoted partial securities alternative which would enable them to retain economic exposure to the Company.

The Board of Just Retirement had committed to pay approximately £2.3m to Avalon if it delivered a firm proposal to the Board on an agreed set of terms, including the above headline terms, by 20 August 2009.

However, this deadline has now been extended by a month which will enable Just Retirement to publish its results for the full year ended 30 June 2009, prior to the announcement of any offer.

The making of the offer by Avalon is still conditional, based on a number of factors including the completion of due diligence.

In addition, the Board has given permission for Just Retirement chief executive, Mike Fuller, to discuss his continued involvement in the business with Avalon.

Other main shareholders in Just Retirement include Invesco Ltd with 10.01%, group CEO Michael Fuller holding 7.58% and Morley Fund with 3.63%.

The firm was founded in 2004 to sell equity release and annuity products through UK financial advisers, and claims it is the second largest equity release provider in the country.

Just Retirement increased sales by 12.8% to £763m in its 2007/08 financial year and has over 250 staff.