(Reuters) – Zurich Insurance has raised 3.9 billion Swiss francs ($5 billion) in a share sale to partly finance the acquisition of specialty insurer Beazley, it stated on Tuesday, sfinishing 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 stated in a statement, which will increase its share capital from 14.6 million francs to 15.3 million.
The net proceeds will be utilized to partly finance the takeover of Beazley. The remainder of the consideration will be funded through existing cash and new debt facilities, it added.
In morning trading, shares in Zurich Insurance were down 5.4% at 543 francs, their hugegest daily loss since April and pushing them to the bottom of Switzerland’s blue-chip index.
Zurich stated the new shares are expected to be listed and admitted to trading on the SIX Swiss Exmodify on or around March 5.
Zurich stated on Monday that Beazley shareholders had agreed to the terms of an £8.1 billion takeover bid, as the Swiss firm sees 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 dividfinish of 25 pence.
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