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- Multi-billion-dollar insurance company Steadfast Group (SDF) is raising up to $250 million
- The company launched an institutional placement to raise $225 million at no less than $5 per share and will also raise up to a further $25 million through a share purchase plan
- Steadfast is using the money to fund the Trapped Capital pipeline of acquisitions which total around $400 million
- Additionally, SDF is acquiring Insurance Brands Australia for up to $301 million and says this will cement its position as the leading general insurance broker network in Australasia
- Steadfast expects to remain in the trading halt until August 19 and shares last traded at $5.39 on August 16
Steadfast Group (SDF) entered a trading halt today as it looks to raise up to $250 million through a placement and share purchase plan.
The Australian insurance company launched a fully underwritten institutional placement to raise the initial $225 million.
The new shares issued under the placement are expected to settle on August 22 and will be allocated on the following day. The shares will be issued at a price to be determined in the bookbuild, which won’t be less than $5 each, being the underwritten floor price.
Once the placement is complete, Steadfast will launch the share purchase plan (SPP) to raise up to a further $25 million. The SPP will give eligible shareholders the opportunity to apply for up to $30,000 worth of new shares between September 6 and September 27.
The multi-billion-dollar stock plans to use the money to fund the current Trapped Capital pipeline of acquisitions which total roughly $400 million.
The company expects that $220 million of Trapped Capital acquisitions will be completed in FY23.
In addition to the Trapped Capital equity investments, Steadfast is acquiring Insurance Brands Australia for a total consideration of up to $301 million.
The initial consideration is $276 million which Steadfast will cover through cash and scrip. There’s also a potential earn-out adjustment payment of up to $25 million which will be payable subject to meeting FY23 performance criteria.
Steadfast Group said the acquisition of Insurance Brands, the largest general insurance company in Australia and New Zealand, will strengthen its position as the leading general insurance broker network in Australasia.
The Insurance Brands acquisition is scheduled for completion on August 23.
Steadfast expects to remain in the trading halt until August 19. Shares last traded at $5.39 on August 16.
