Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/money/article/a420298
Resolution gets 95% take up for its £2bn rights issue
Resolution, the life insurance takeover specialist, says the vast majority of new shares issued in its fund raising to buy AXA UK Life were bought by its investors.
Markets
Resolution has revealed that its shareholders bought 95.5% of the new shares offered in its £2 billion rights issue.
The money raised by Clive Cowdery’s insurance consolidation vehicle will be used to fund the £2.75 billion purchase of AXA's UK life business, announced in June.
The new shares will begin trading on the London Stock Exchange today. Barclays Capital and RBC Capital Markets, who are underwriting the share issue, will look for buyers for the 61,400,000 of shares that were not sold.
Cowdery intends to merge the acquired AXA business into Friends Provident which Resolution bought last year. Cowdery (pictured) aims to acquire and merge four UK life insurers by 2013.
Tools from Citywire Money
More about this:
More from us
- Paul Evans to oversee AXA Life division but future role unclear
- Resolution to seal Axa deal by the end of the month
- Nicolas Moreau: Resolution talks are part of AXA UK growth plan
Look up the shares
Archive
Today's articles
- Week Ahead: waiting uncomfortably for Greece to go
- Investment trusts beat unit trusts in emerging markets
- Market Blog: confident US consumers lift the mood
- Smart Investor: let the news flow wash over you
- What are investment funds and how do they work?
- Your finances after... marriage
- Lyttleton takes summer break from BlackRock funds
- Threadneedle bond boss Fitzsimmons exits
2 comments so far. Why not have your say?
Gerico41
Aug 07, 2010 at 02:44
This was a very unfortunate rights issue for the small investor. My holding was in a fully subscribed I S A fund. Existing investors were left with about 10% of there holding. In effect we were forced to sell the new shares into a buyers market to buy back our own share of the company. The spread and dealing costs reduced the value of our holding.
report thisCynical Investor2
Aug 09, 2010 at 13:22
ST
Am afraid some Rights Issues are structured in such a way that existing Stockholders are between a rock and a hard place. Underwriters know it and so does the Board. One does wonder how Stockholders interests are being enhanced?
report thisleave a comment
Please sign in here or register here to comment. It is free to register and only takes a minute or two.