The £11.1bn takeover of Alliance Boots appeared to have cleared its most important hurdle on Tuesday after the health and beauty group’s pension trustees agreed a funding package with Kohlberg Kravis Roberts.

After weeks of tense negotiations, KKR agreed to increase its cash payment to the pension fund to meet a shortfall of £305m claimed by the trustees. The private equity group is to pay £418m in cash over ten years - or a net present value of £305m - to buttress the fund against the threat of the company’s insolvency.

KKR has also put up a security package where the fund would have a priority claim over £200m in the event of insolvency and a claim that ranks equal with senior bank lenders over an additional £400m.

Trustees took legal advice over the possibility of blocking the takeover if they had failed to reach agreement with KKR. The deal is likely to take some heat out of Wednesday’s encounter between Dominic Murphy, European head of health care and consumer products at KKR, and MPs on the Treasury select committee who are examining the role of private equity.

See Full Article

If you are concerned about insolvency within your company then please call us now. We can help make the debts manageable and even write of a percentage.

Call us now on: 0800 071 1616

Email us at: info@debtsgone.co.uk

Website: www.debtsgone.co.uk