Skip to main content

The Globe and Mail

CPPIB acquires 30-per-cent stake in BGL Group for $1.14-billion

Canada Pension Plan Investment Board President and Chief Executive Officer Mark Machin waits to appear at the Standing Committee on Finance on Parliament Hill, in Ottawa on Tuesday, November 1, 2016.

Adrian Wyld/The Canadian Press

BGL Group, owner of Comparethemarket.com, said on Thursday it would sell a 30 per cent stake for about 675 million pounds ($1.14-billion) to the Canada Pension Plan Investment Board instead of listing its shares in London.

BHL, the owner of BGL Group, will retain a majority shareholding in the business and the deal is expected to be completed by the end of April, it said.

"During the course of our IPO preparations, our shareholder BHL received a number of approaches from different kinds of investors... A competitive process followed and our view was that CPPIB was the best partner for BGL," the chairman of BGL Group, Peter Winslow, said.

Story continues below advertisement

The announcement is another blow to the London Stock Exchange after earlier this month telecoms masts firm Arqiva, Britain's biggest debt collector Cabot Credit Management and business services firm TMF Group all pulled deals.

The announcement of the float plans had driven hopes of a revival of the market for initial public offerings (IPO) in Britain, a market that has been muted since Britons voted to leave the European Union in June 2016.

Ready meals firm Bakkavor Group, this month pulled but then resurrected its market debut plan.

Up until November, British IPOs have this year raised $6.59-billion, a 13 per cent drop on the same period a year ago.

BGL Group distributes insurance and household financial services to 8.5 million customers and runs price comparison websites Comparethemarket.com in Britain and LesFurets.com in France.

Report an error
Comments

The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

Please note that our commenting partner Civil Comments is closing down. As such we will be implementing a new commenting partner in the coming weeks. As of December 20th, 2017 we will be shutting down commenting on all article pages across our site while we do the maintenance and updates. We understand that commenting is important to our audience and hope to have a technical solution in place January 2018.

Discussion loading… ✨