Phoenix launches capital raising to help fund acquisition
Phoenix Group said on Wednesday that it has launched a £950m capital raising to help fund its acquisition of Standard Life Aberdeen's insurance arm.
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The company said it will issue seven new shares at 518p each for every 15 existing shares. These will represent around 32% of the enlarged issued share capital.
Phoenix announced back in February that it had agreed to buy Standard Life’s insurance business for a total consideration of £2.9bn.
Chief executive Clive Bannister said at the time: "This is a compelling transaction for Phoenix, consistent with the group's stated strategy and acquisition criteria. The proposed acquisition establishes Phoenix as the pre-eminent closed life fund consolidator in Europe with more than 10m policyholders and supports a significant increase in Phoenix's cash generation."
On Tuesday, Standard Life said it plans to return as much as £1.75bn to its shareholders in the wake of the insurance arm sale.
At 0908 BST, the shares were up 0.9% to 779p.