News

Acquisition of Thornway Insurances Limited - The board of COBRA Holdings PLC ("COBRA") is pleased to announce the acquisition of Thornway Insurances Limited ("Thornway").

The board of COBRA Holdings PLC ("COBRA") is pleased to announce the acquisition of Thornway Insurances Limited ("Thornway").

Thornway is an independent general insurance broker based in Manchester with mainly commercial business.  The COBRA Group's provincial presence is based on regional "hub" offices supporting smaller "spoke" offices.  Following the acquisition, COBRA will fully integrate Thornway in to its regional hub in Manchester.

Thornway's most recent audited accounts were drawn up for the year ended 30 July 2008 and showed turnover and profits before tax of £407,485 and £153,305 respectively. Its' net assets at that date were £292,449.

The consideration comprises the issue of 1,000,000 new COBRA shares to the vendors, and a cash payment of £351,954 being the amount of Thornway's surplus cash balances. In aggregate the value of the consideration amounts to a maximum of £1,101,954, based on the closing mid market price of a COBRA share on 20 February 2009 of 75 pence. The sale and purchase contract contains warranties and indemnities in favour of COBRA and restricts the vendors from selling the new COBRA shares issued as consideration for a period of 12 months.

Application will be made to London Stock Exchange plc for the admission of 1,000,000 new COBRA shares, allotted to the vendors of Thornway, to trading on AIM and dealings are expected to commence on 2 March 2009. 

Following the allotments of shares referred to above, COBRA has a total of 42,096,216 shares of 25p each in issue.

Steve Burrows, Chief Executive of COBRA said "I am delighted to welcome Thornway and its clients to the COBRA Group."

Enquiries:

COBRA Holdings PLC

David Stanley                                                             Tel: 020 7204 0014

Fairfax I.S. PLC - Nominated Adviser

David Floyd / Simon Bennett / Ewan Leggat                Tel: 020 7598 5368

Notes to Editors

About COBRA Holdings PLC

The Group was formed in 2006 through the amalgamation of six separate companies under a single parent company, COBRA Holdings PLC, creating a business capable of providing a wide range of services in five distinct areas of the insurance market. 

It has one of the fastest growing UK networks, with in excess of 125 independent insurance brokers. In addition, it offers retail insurance, wholesale Lloyds facilities, underwriting capacity and financial services. The Group has expanded rapidly over the last year due to both organic and acquisition growth.