Zurich Insurance has raised 3.9 billion Swiss francs ($5bn) in a share sale to partly finance the acquisition of Britain’s Beazley, it said on Tuesday, sending shares in the group down sharply.
The Swiss insurer has placed 7.1 million new shares with a par value of 0.10 francs per share at 550 francs per new share, it said in a statement, which will increase its share capital from 14.6 million francs to 15.3 million.
The net proceeds will be used to partly finance the takeover of the speciality insurer Beazley. The remainder of the consideration will be funded through existing cash and new debt facilities, it added.
By 0840 GMT, shares in Zurich Insurance were down 5
4 per cent at 543 francs, their biggest daily loss since April and pushing them to the bottom of Switzerland’s blue-chip index.
Zurich said the new shares are expected to be listed and admitted to trading on the SIX Swiss Exchange on or around March 5.
Zurich said on Monday that Beazley shareholders had agreed to the terms of an 8.1 billion pound takeover bid, as the Swiss firm looks to expand its foothold in speciality insurance.
Under the deal, Beazley shareholders would receive 1,335 pence per share, comprising 1,310 pence in cash and a dividend of 25 pence.