26th Jul 2007 08:15
Tawa PLC26 July 2007 PRESS RELEASE26 July 2007For immediate release First day of dealings on AIM for only UK listed run-off consolidator Tawa plc ("Tawa" or "the Company"), a consolidator of non-life insurance run-off, today announces that the Company's shares have been admitted to trading on AIM. KBC Peel Hunt Ltd is the Company's nominated adviser and broker. The Business Tawa was formed in 2001 with the purpose of acquiring and managing run-offportfolios of non-life insurance and reinsurance companies. It also providesrun-off related services through a dedicated subsidiary, Tawa Management. As the first UK listed consolidator of the non-life run-off market, Tawa'sstrategy is to acquire companies and portfolios in run-off in the UK, US,continental Europe, Bermuda, and elsewhere as opportunities arise. Tawa's business model is one of active downscaling the reinsurance portfolios itacquires, essentially by way of commutation of outstanding policies. By creatinga diversified portfolio of run-off businesses at different stages of the run-offprocess Tawa will gain economies of scale whilst also enhancing and stabilisingearnings. Since its formation, Tawa has acquired CX Re and KX Re and is managing therun-off of these businesses. Admission details KBC Peel Hunt, as agent for the Company, conditionally placed 16,000,000 newOrdinary Shares with investors at the Placing Price. The Placing was notunderwritten by KBC Peel Hunt. The Placing has raised approximately £20.0 million for the Company, beforeexpenses (approximately £17.0 million after expenses). Approximately £9.8million will be used to partially repay a bridge loan from Financiere Pinaultfor the acquisition of KX Re which was advanced to the Company on 3 May 2007.The remaining proceeds of approximately £7.2 million (after expenses) will beused to provide working capital. Financiere Pinault has agreed to convert the balance of the bridge loan facilityfor the acquisition of KX Re (approximately £7.4 million) into Ordinary Sharesat the Placing Price pursuant to the Subscription Agreement. Highlights • £20 million raised through placing • £7.4 million bridge loan facility converted to equity • Analysis/use of net proceeds: • Approximately £9.8 million loan repayment • Balance of proceeds (approximately £7.2 million) to provide working capital • Placing Price of 125p per Ordinary Share. • The market capitalisation of the Company at the placing price will be £127.4 million. • The Company's mnemonic is TAW. • First non-life run-off consolidator to be listed in the UK. Gilles Erulin, Chief Executive Officer, commented; "We are pleased to havefloated successfully on AIM and welcome our new shareholders. This float shouldprovide the proper basis for our acquisition focused strategy." For further information: Tawa plc 020 7816 5032Gilles Erulin, Chief Executive OfficerHaggie Financial 020 7417 8989Peter Rigby, Juliet TilleyKBC Peel Hunt 020 7418 8908James Britton, Guy Wiehahn This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
ACH.L