Hastings welcomes Rand Merchant as new largest shareholder

Shares in Hastings Group spiked on Wednesday afternoon after the insurer confirmed that Rand Merchant Investment was acquiring a 29.9% stake.

RMI, which will be able to nominate a director for appointment to the board of the FTSE 250 company, has agreed to buy the shares from Hastings Investco and certain individual shareholders for a total of between roughly £487.3-499.5m.

The board of Hastings hailed an investment that will make RMI its largest shareholder once the purchases are complete, which is expected to become effective by no later than 30 April next year.

Chief executive Gary Hoffman welcome RMI's CEO Herman Bosman, who will be the first appointed representative.

"RMI has a number of investments in insurance businesses in South Africa, Australia, New Zealand and the UK. Given this experience, Hastings will look to explore potential areas of cooperation with RMI and OUTsurance in the future that would accelerate execution of our existing strategy including in the areas of home, data analytics, mobile propositions and operational efficiencies."

Hastings shares were up 5% at 232.32p by 1540 GMT on Wednesday.