On 26-Jun-09, Permira, the UK private equity fund, announced that it was considering a possible offer of 76p a share for Just Retirement plc, the UK life assurance group. This announcement followed more than 10 months after Just Retirement said it had received expressions of interest in the company - which apparently had come after its 52.29% founder/shareholder -Langholm Capital- had initiated a possible sale of the company.

Since the Jun-09 provisional 76p offer announcement, Just Retirement's Board has agreed with Permira to set the date by which Permira would need to submit a firm proposal to the board at 25-Sep-09. Just Retirement has committed to pay GBP 2.3m to Permira if the firm 76p a share bid it tables is not recommended within three business days of midnight of the 25-Sep-09 deadline. 

Since Permira announced its provisional offer, it has approached Just Retirement's CEO to be involved in the possible bid and has already obtained irrevocable undertakings for the 76p bid from at least 59.89% of Just Retirement's shareholders (52.29% from the founder Langholm; and 7.6% from CEO Mike Fulller). 

Given: a) the high level of irrevocables, b) the high level of due diligence already done by Permira, c) the board's incentive for a recommended bid, and d) the desire of the majority shareholder/founder to sell at the provisional offer price, we believe there is a high likelihood of the firm 76p bid to come through by midnight of 25-Sep-09, and would recommend to buy Just Retirement's at the current 69p level. Given the belief the offer will be tabled as a scheme of arrangement, we would expect the deal to close by end November 2009, realizing a return of 10.1% over 2 months (annualized return of appr. 60%).