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Swiss Re offloads remaining Phoenix stake for £440m

12th January 2022 - Author: Katie Baker

Reinsurance giant Swiss Re has exited its shareholding in Phoenix Group Holdings by selling its remaining 66,199,917 ordinary shares in the savings and retirement company for approximately £440 million.

Swiss ReSwiss Re sold the shares at a price of 664 pence per ordinary share, or 3.1% below yesterday’s close, which valued the reinsurer’s holding in Phoenix at £453.5 million.

The price per share was determined by way of an accelerated book building process.

In June of last year, Swiss Re reduced its shareholding by roughly 6.6% in the firm for £437 million.

An analyst notes that this sale comes the same day as Phoenix announced better than expected new business data. Confirming that while Swiss Re raised £440 million from the sale, Phoenix was not party to the placing and has not received any proceeds.

Swiss Re’s stake in Phoenix formed part of the financing structure of the sale of its life subsidiary Reassure to Phoenix in 2020, when the reinsurer assumed a 13.3% stake.

Following the completion of the most recent placing, Swiss Re has fully exited its holding in Phoenix.

Merrill Lynch International acted as Sole Global Coordinator and Sole Bookrunner, with Phoenix not receiving any of the proceeds.

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