Chaucer has announced an offer by ALIT (No. 1) Ltd, a wholly-owned subsidiary, to acquire the balance of £7.9m of capacity on Syndicate 1084, which Chaucer does not already own. The offer relates to capacity for 2006 onwards and does not affect prior years. Currently, Chaucer expects to reduce capacity on syndicate 1084 for 2006 from £400m to £350m. Syndicate 1176 is expected to increase its capacity from £18.1m to £22.5 m.
The Offer comprises 25.0p in cash for each £1 of capacity held on Syndicate 1084 for the 2005 year of account and is conditional on Lloyd's granting consent to a buy-out of the capacity owned by members of Syndicate 1084 who have not accepted the Offer. If Chaucer were to achieve this, total consideration would be £2.0m.Chaucer has received an undertaking from a members' agent, which represents approximately 83% of the outstanding capacity for the 2005 year of account, to make a general recommendation to its members to accept the Offer in respect of the whole of their capacity, the recommendation being subject to the individual circumstances of each member.
