Resolution is raising £1.55bn through a rights issue to fund its £3.6bn acquisition of Abbey's life insurance businesses, reports the Telegraph.
The paper says Resolution, which is the leading consolidator of closed life funds, fixed the rights issue price at 480p a share yesterday - the middle of the 440p to 520p range unveiled when the deal was announced on June 7. The shares had been fully underwritten by Citigroup and Goldman Sachs, the investment banks, at 440p. Investors will be offered eight shares for every nine existing ones. The rights issue is the largest since Kingfisher raised £2bn to buy French DIY chain Castorama in 2002. The 480p-a-share price is equivalent to a 27.8% discount to the 665p closing price on Friday an...
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