Outgoing IAG UK boss Neil Utley backs £74m buyout

KBC Group and KBC Peel Hunt have reached agreement over a buy-out of KBC Peel Hunt for a total consideration of £74m.

This deal has been supported by KBC Peel Hunt staff and backed by a group of external investors including outgoing insurance business chief, IAG UK CEO Neil Utley.

KBC Peel Hunt provides corporate finance advice, research, sales trading, agency sales and market making for mid and small cap companies. The company operates from offices in London, employing 136 staff who will all remain with the company.

KBC Group said the divestment was based on a decision to focus on its core strategy of providing bancassurance services to retail, SME and midcap customers in its core markets (Belgium and central and eastern Europe).

Luc Popelier, CEO of KBC Group's market activities, commented: "I am pleased that we have succeeded in finding a suitable and promising solution for KBC Peel Hunt. The agreement announced today marks another step in the implementation of KBC's strategy which focuses on its core markets and customers and on a reduced risk profile.

"At the same time, today's agreement provides KBC Peel Hunt with a new and stable environment which will be beneficial to all its stakeholders. We are convinced that KBC Peel Hunt's management will succeed in further developing their business, fully valuing staff competence and know-how while maintaining customer service at an excellent level."

Simon Hayes, CEO of KBC Peel Hunt added: "Today marks an important milestone for KBC Peel Hunt. Our priority is to benefit our clients and staff and to help KBC Peel Hunt grow its already strong franchise. We feel that the best outcome for Peel Hunt is the alignment of interests between staff and clients. We now have the right structure to develop a leading independent mid and small cap UK broker. This is the rebirth of a 21 year old company."

Mr Utley, an investor, concluded :"As a long-standing client of KBC Peel Hunt, we recognise that this is the sort of financial services business we like to back; KBC Peel Hunt has great prospects based on offering an excellent service to its clients and we are hugely excited about working with the management team to grow the business."