Dignity (LSE:DTY) PLC has agreed to a £281mln takeover from a consortium spearheaded by Direct Line founder Sir Peter Wood.
The potential agreement was first announced on 4 January 2023 and both sides have now struck a deal which values each share in the funeral services company at 550p cash.
Including the group's debt the deal had an implied enterprise value of around £789mln.
The bidding consortium consists of SPWOne V Limited, Castelnau Group Limited and Phoenix Asset Management Partners Limited.
Dignity (LSE:DTY), which operates more than 700 funeral branches across the UK, noted the terms value the business at a 29% premium to the closing price on 3 January, the day before a possible bid was announced.
Shareholders in Dignity (LSE:DTY) have also been offered a share alternative to the cash proposal.
Dignity (LSE:DTY) said it considers the terms of the deal “fair and reasonable”.