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AUB drops Coverforce takeover plan

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AUB has abandoned its plan to acquire Coverforce Holdings after failing to gain access to key documents required to finalise the deal.

The company said in August it had agreed to buy a 49% stake held by private equity investor Pemba Capital Partners and would then acquire the remaining equity in a deal valued at around $150-200 million.

But shareholding levels and associated sale rights have been in dispute in the NSW Supreme Court.

The takeover deal conditions included delivery of due diligence materials to AUB by a date agreed with Pemba.

“Delivery of due diligence materials to AUB has not occurred and AUB has not waived its right to due diligence,” Group General Counsel and Company Secretary Freya Smith says in a market release today.

“In consequence, and as the parties have been unable to reach agreement on an amended date for delivery of due diligence materials, the conditional sale agreement has terminated.”

Coverforce was established in 1994 and is the largest privately owned insurance broker in Australia, focusing on the SME, mid-market and large corporate clients.