The AUB Group Ltd (ASX: AUB) share price leapt out of the gate in early trade on Monday, amid the company hosing down speculation on an acquisition.
The company's shares are currently trading at $23, up 2.04%. But earlier, AUB shares were as high as $24.20, a 7.36% gain on yesterday's closing price.
Let's take a look at what the insurance broker announced today.
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What is happening at AUB?
AUB has shut down speculation it will acquire London-based Lloyd's wholesale insurance broker Tysers.
AUB confirmed it has held talks with Tysers owner Odyssey Investment Partners about the transaction.
This included discussions with the senior management team. However, this has not led to a transaction. AUB said:
Although AUB believes in the strategic rationale of the potential transaction, the discussions have not led to a transaction being agreed on terms acceptable to the parties.
AUB reported underlying net profit after tax (NPAT) soared 17% to $30 million in half-year results in February. The company attributed this growth in underlying NPAT to organic growth and the contribution from acquisitions in Australian broking and agencies.
Prime Value Emerging Opportunities fund manager Richard Ivers has recently added to existing holdings of AUB due to it being a "high quality business" that "became cheaper".
AUB share price recap
The AUB share price is soaring 18% over the past 12 months, but it has fallen 10.7% this year to date.
In the past month, AUB shares have jumped 5.75%, while they are up 1.6% in the past week.
For perspective, the benchmark S&P/ASX 200 Index has returned about 10% over the past year.
