Phoenix abandons private equity buy-out talks

Life fund consolidator Phoenix Group has ended talks with private equity investment house CVC Capital Partners regarding a possible acquisition and announced that it is no longer considering any takeover approaches.

Phoenix, which claims to be the UK’s largest specialist closed life fund consolidator, said it is not discussing a potential sale with any other party and is therefore no longer in an offer period.

The company announced in November 2011 that it had been approached by CVC, shortly after ending discussions over a potential acquisition with Resolution.

Clive Bannister, group chief executive officer of Phoenix, said: “Whilst the board is obliged to consider credible approaches, the terms proposed by CVC did not reflect our view of the full value of Phoenix and its stable, long-term cash flows.

“As a result, we have mutually decided to terminate these discussions. Phoenix continues to focus fully on our business, customers, shareholders and staff to maximise the potential of our powerful consolidation platform.