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LV= announces result of the member vote at Special General Meeting

10/12/2021
FINANCIAL AND CORPORATE

Significant majority of voting members in favour of proposed transaction with Bain Capital, but the required 75% threshold is missed

  • 69% of members who voted supported the Special Resolution to approve the acquisition of the LV= business by Bain Capital at the Special General Meeting (‘SGM’)
  • The result is below the required 75% threshold so the transaction with Bain Capital will no longer proceed
  • This result will have no impact on trading; the business will continue to serve its customers as usual and member policies remain secure and protected by the same safeguards. 

LV= today announces the results of its Special General Meeting (‘SGM’). The breakdown of the voting* is as follows: 

  • Turnout of 174,240 representing 15% of LV=’s 1.16 million members
  • 119,225 members voted in favour of the proposed acquisition of the LV= business by Bain Capital representing 69% of valid votes (excluding abstentions or spoilt papers) and 10% of all members
  • 52,561 members voted against the proposals representing 31% of valid votes and 5% of all members
  • 985,760 members (85% of all members) did not place a vote.

The number of members who voted in favour was below the required 75% threshold for the vote to pass, so the transaction with Bain Capital will no longer proceed. 

*These numbers are subject to final verification, which would not be expected to affect the result.   
 
The Board of LV= conducted a thorough review of the strategic options available during 2020 and assessed the outcome of each option for our members and other stakeholders.  The clear outcome from this structured process was that the proposed transaction with Bain Capital was concluded to be in the best interests collectively of members, employees and our other stakeholders.  A significant majority of our members supported this with 69% voting in favour of our proposals, however we fully respect the outcome of the vote.  

“We are deeply appreciative of the members who took the time to vote.  Our priority has always been to put the interests of LV=’s members first, and, in particular With-profits policyholders, who share in the Group’s risks. Although 69% of voting members supported the Board’s recommendation and voted in favour of the transaction with Bain Capital, the Board is disappointed not to have achieved the outcome that we believed was in the best interests of LV= and its members.” 

Alan CookChairman of LV=
The results of the voting on the Scheme of Arrangement will be available following the Members’ Meeting later this afternoon.