Swiss Re suspends Kane’s £3 billion flotation of Reassure
Swiss Re has suspended the £3 billion IPO of its UK zombie funds business ReAssure – chaired by former Scottish Widows boss Archie Kane – because of resistance from investors unhappy at its valuation.
The flotation would have been one of the biggest in London this year but weak demand has forced advisers working on plans to float 26% of the business to postpone the share issue.
Swiss Re, which co-owns the business with Japan’s MS&AD Insurance Group, had set a price range of 280p to 330p, notionally valuing it at £2.8 billion to £3.3 billion. Trading in the shares was meant to begin in London this morning.
Swiss Re’s chief financial officer John Dacey, says: “While we firmly believe that the long-term interests of ReAssure are best served by a more diversified shareholder base, there has been no pressing need for Swiss Re to divest shares at a price that we consider to be unrepresentative of ReAssure’s value and future prospects.”
Asian stocks advanced and the dollar was weaker as traders responded to comments from Federal Reserve Chairman Jerome Powell taken as a hint that US interest rates would be cut later this month.
Japan’s benchmark Nikkei 225 rose 0.52% to 21,645.45. Hong Kong’s Hang Seng index rose 1.2% to 28,534.66 while the Shanghai Composite was up 0.3%.