The Abu Dhabi Investment Authority, the emirate's sovereign wealth fund, entered exclusive talks to acquire J.C. Flowers & Co. LLC's 21.4% stake in U.K.-based pension buyout firm Pension Insurance Corp. PLC, Sky News reported.
The deal, which would value the insurer at roughly £3 billion, is expected to cost about £650 million and lead to a stock market listing in the coming years, the news agency said. Other minority investors in Pension Insurance may sell some of their shares to the authority as part of the same transaction, Sky News added, citing sources.
The authority had been bidding for the British pension buyout firm's stake against a number of other companies, including a Canadian pension fund and Australian financial services group Challenger Ltd., the sources told the publication.
Other minority shareholders of Pension Insurance include CVC Capital Partners Ltd. and Luxembourg-based investor Reinet, while the company's corporate clients include London Stock Exchange Group PLC.