18th May 2020 17:36
(Alliance News) - Beazley PLC on Monday said it intends to raise GBP247 million through the issue of up to 15% of its existing issued share capital at 229 pence each.
Shares in the insurer closed 2.5% higher at 331.40 pence each on Monday in London, giving it a market capitalisation of GBP1.76 billion.
Beazley said it will place shares by way of an accelerated bookbuilding process with JP Morgan Securities PLC and Numis Securities Ltd acting as joint bookrunners.
Certain directors and members of the senior management team have agreed to participate in the placing, the company added.
Beazley said the new funds will be used to position the business for future growth opportunities as well as strengthen its balance sheet amid the continued uncertainty arising from the ongoing Covid-19 pandemic.
In April, the company forecast USD170 million in losses resulting from Covid-19, net of reinsurance. At the time, it had drawn down a USD140 million letter of credit from its USD225 million banking facility. Following that, it increased the banking facility to USD450 million and withdrew an additional USD85 million, taking its available credit under the facility to USD225 million.
Beazley said it has decided not to pay a first interim dividend for the six-month period ending June 30 but assured that it remains committed to resuming its dividend payouts in future.
By Ife Taiwo; [email protected]
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