By Elena Vardon
Zurich Insurance raised around 3.9 billion Swiss francs ($5 billion) through a share issue to fund its acquisition of Beazley the day after formalizing its sweetened takeover bid for the U.K. specialist insurer.
The Swiss insurer placed around 7.1 million new shares with selected investors at 550 francs each via an accelerated bookbuild process, it said Tuesday. Zurich shares last closed at 575 francs.
The group on Monday formalized the terms of its cash offer in a deal that values Beazley at around 8 billion pounds ($10.72 billion). Zurich, which started courting the London-listed company last year in June, won over Beazley's board last month by putting forward an improved proposal after a string of rejected approaches.
The new shares, which should be admitted to trading on Thursday, will be eligible to get the 30 franc dividend per share payout on 2025's earnings.
Zurich will fund the rest of the transaction with about $3.0 billion of existing cash and around $2.9 billion of fresh debt.
The insurance giant plans to create a global specialist platform with around $15 billion in gross written premiums, capitalizing on its presence in the Lloyd's of London specialist marketplace. Beazley covers complex commercial exposures ranging from cyber liability and professional indemnity to marine, property, and political risks.
Write to Elena Vardon at elena.vardon@wsj.com
(END) Dow Jones Newswires
03-03-26 0141ET
