Resolution says it will go ahead with a £2bn rights issue later this month even if the Axa deal falls through, as the proceeds can be used to fund other acquisitions.
Resolution will hold a general meeting to approve the £2.75bn take-over of Axa’s UK life business and its rights issue on 20 July, with the offer period due to start the day after. However, the Clive Cowdery-led consolidation vehicle says the rights issue is not conditional upon completion of the Axa acquisition. Should the deal not go ahead, proceeds from the issue will be invested on a short-term basis whilst other acquisition opportunities are considered. Resolution will pay Axa £2.224bn in cash on conclusion of the deal, a further £26m in cash in an agreed post-sale reorganisat...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
