Investing.com -- Just Group PLC (LON:JUSTJ) stock soared 67.9% on Thursday after the company announced it has reached an agreement to be acquired by a subsidiary of Brookfield Wealth Solutions Ltd for 220p per share.

The acquisition price represents a 75% premium to Just Group’s closing price yesterday, significantly exceeding the company’s all-time high from April 2016.

The deal values Just Group at approximately 1.1 times its FY 2024 Unrestricted Tier 1 capital (less final dividend), comparable to the multiple recently paid by Athora for PIC.

According to the terms of the agreement, the acquisition is expected to complete during the first half of 2025. The acquirer reserves the right to reduce the consideration if any dividends or other capital returns are announced or paid before the deal closes.

The acquisition will likely be implemented through a court-sanctioned scheme of arrangement, though Brookfield reserves the right to proceed via a Takeover Offer with necessary approvals.

Jefferies analysts noted that Just Group’s shareholders are unlikely to achieve better value from either another strategic buyer or as a separately listed company in the short-to-medium term.

"Thus, as the bid premium appears to offer very attractive upside, and has already received the support of management, we believe that investors should similarly support the deal," according to Jefferies analysts.

The deal has already secured management support, suggesting a smooth path to completion, though regulatory approvals will still be required.

Related articles

U.K. insurer Just Group stock skyrockets on Brookfield acquisition deal

Victoria's Secret Exposed: The Warning Sign Behind the Stock's 52% Collapse

Surge of 50% since our AI selection, this chip giant still has great potential

View Comments