Rights issue launched
Phoenix raises £950m for Standard Life insurance deal
The FTSE 250-listed insurer said, under the rights issue, shareholders can apply for 7 new shares for every 15 existing ones held, at a price of 518p each.
In mid-morning trading, Phoenix shares were trading at 782p, up 1.3% on last night’s closing price.
The rights price represents a 25.1% discount to the theoretical ex-rights price of 691p per share calculated by reference to the closing price on 29 May.
The rights issue will result in the issue of 183,522,385 new shares, representing approximately 46.7% of Phoenix’s existing issued share capital and approximately 31.8% of the enlarged issued share capital.
Phoenix announced the acquisition of Standard Life’s insurance business from Standard Life Aberdeen on 23 February which includes a total cash payment of £1,971 million upon completion.
The group said the rights issue is fully underwritten by HSBC, Merrill Lynch International, JP Morgan Securities.
Staff at Standard Life’s head office in Lothian Road are awaiting clarification on how the deal will affect them.
