Argus completes purchase of BF&M shares

Argus Group has completed its purchase of $100 million worth of shares in BF&M, which paves the way for the merger of the two companies. 

Camellia said today it had completed the sale of the shares to Argus subsidiary  Bermuda Life Insurance Company. Camellia, which said it had sold the shares to enable it to focus on its core agricultural business, realised a £10.7 million ($13.6 million) profit from the sale. 

Domestic insurers Argus and BF&M have said the sale of the BF&M shares – which sparked a takeover fight between the companies – along with BF&M’s purchase of a 32.4% stake in Argus – were required to allow shareholders to vote on the merger. 

The companies have said they hope to complete the merger by the end of the year. 

Argus said it had borrowed $50 million from HSBC Bank of Bermuda and Truist to effect the purchase of the shares. The debt will become a liability of the merged company once the amalgamation is completed. 

Byron Coombs (pictured), Camellia CEO, stated: "The completion of this transaction is an important step for Camellia, enabling it to continue focusing on its strategy of growing its agricultural businesses, through investment in its existing group companies as well as seeking new opportunities. 

“We thank the team at BF&M for their long-term association with Camellia and wish the merged companies every success."

 Camellia will also use £9 million ($11.5 million) to buy back the company’s ordinary shares. 

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