Insurance Business recently revealed that Beazley Plc intended to raise gross proceeds of approximately £247 million. Today the insurance giant has announced the successful completion of the placing of these new ordinary shares.
Over 78.5 million new ordinary shares of five pence each in the capital of the company (the "placing shares") were placed by J.P. Morgan Securities plc and Numis Securities Limited at a placing price of 315 pence per placing share. This placing has led to Beazley raising £247 million in fresh capital. The placing price of 315 pence represents a discount of 4.9% to the specialist insurer’s closing share price of 331.4 pence on May 18, 2020.
A number of Beazley’s directors and members of its senior management team either participated in the placing or have separately subscribed for new ordinary shares of five pence each in the capital of the company at the placing price, pursuant to subscription letters entered into with the company. A total of 13,085 subscription shares were subscribed through the subscription.
The new ordinary shares will, when issued, be credited as fully paid and on an equal footing in all respects with each other and with the existing ordinary shares of the company, including, without limitation, the right to receive all dividends and other distributions declared, made or paid after the date of issue.
This news follows the announcement by Beazley late last month that losses resulting from COVID-19 are estimated at a cost of approximately £138 million net of reinsurance. In a statement at this time from CEO Andrew Horton it was noted that Beazley would continue to monitor closely all developments relating to the coronavirus outbreak and that the impact of this pandemic is still being assessed.
