Shares in Brit Insurance were up on the FTSE 250 in morning trading after the group confirmed that it would be accepting a takeover offer by Achilles, a newly created company owned by a private equity consortium.

Apollo Management and CVC Capital Partners will be the majority owners of Achilles.

The deal sees Brit Insurance valued at up to £11 per share, valuing the total company at as much as £871 million. Brit Insurance is the sponsor of the England cricket team and one of England's most prestigious cricket grounds, the "Brit" Oval.

John Barton, Chairman of Brit Insurance, said, "I am pleased that we have reached agreement on the terms of the Offer which values Brit Insurance's shares at a significant premium to the prevailing market price prior to the commencement of the Offer Period. Having given full consideration to the Offer from Achilles, the Independent Directors believe it represents good value for Brit Shareholders and recommend that they accept the Offer."

By 09:50 shares in Brit Insurance were up 2.25 per cent on the FTSE 250 to 1,044.00 pence per share.