March 27, 2013 / 12:51 PM / in 5 years

CPPGroup gets takeover approach from majority shareholder

March 27 (Reuters) - British credit card insurer CPPGroup , hit by the loss of two big contracts, said founder and majority shareholder Hamish Ogston had offered to buy the company for an indicative 1 pence per share, or 1.7 million pounds ($2.6 million).

CPPGroup earlier this month forecast lower revenue and profit for 2014 and beyond after Santander UK Plc and Royal Bank of Scotland Group Plc did not renew contracts.

Ogston’s proposed offer represents a 67 percent discount to CPPGroup’s Tuesday closing price of 3.08 pence.

The shares were trading at 3.25 pence on the London Stock Exchange at 1233 GMT. The stock closed at 259.75 pence on its first day of trading in March 2010.

The company said last week it was in financing talks with its lenders for debt facilities due to mature on March 31.

The company, which assists customers with credit and debit card protection and personal identification protection, said Ogston must make a firm intention to make an offer by April 24.

Ogston, who was awarded a Commander of the Most Excellent Order of the British Empire in 2011, founded CPPGroup in 1980.

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