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- AUB Group (AUB) is looking to raise $350 million to acquire insurance broker Tysers for $880 million
- The acquisition will be paid through the equity raising, a placement of AUB shares to the vendor of Tysers and a new $675 million debt facility
- The capital raise will consist of an institutional placement of $71 million and a 1 for 5.2 pro rata accelerated non-renounceable entitlement offer for $279 million
- Subject to regulatory approval, the acquisition is expected to be complete within the first half of next year
- AUB shares were last trading at $22.36 each
Insurance company AUB Group (AUB) is looking to raise $350 million to acquire insurance broker Tysers for $880 million.
The acquisition will be paid through the equity raising, a placement of AUB shares to the vendor of Tysers and a new $675 million debt facility.
The capital raise will consist of an institutional placement of $71 million and a 1 for 5.2 pro rata accelerated non-renounceable entitlement offer for $279 million.
The new shares will be offered at $19.50 each, representing a 12.8 per cent discount from the last closing price.
Subject to regulatory approval, the acquisition is expected to be complete within the first half of next year.
Tysers is the sixth largest wholesale broker in the Lloyd’s marketplace, the largest insurance market globally.
The acquisition will allow the company direct access to the marketplace which it believes will allow for further growth.
“The acquisition represents an important next step in the AUB Strategy to build out our client offering and risk expertise,” Chief Executive Officer Mike Emmett said.
“Lloyd’s is the largest insurance market in the world. Tysers provides AUB Group the ability to access a diverse ranger of risks and insurance types for our clients and broker networks in Australia and New Zealand whilst also gaining the capability to accelerate the establishment of new agencies in these markets.”
Shares are currently paused as more details are expected to be released in regards to the institutional component of the entitlement offer.
AUB shares were last trading at $22.36 each.
