European insurance group Talanx has launched a €300 million capital raise to increase its free float, as the company looks to enhance the trading liquidity of its shares and further improve its position in equity indices.
The company’s share capital is expected to increase through the issuance of new no-par value registered shares against cash contributions under simplified exclusion of shareholders’ subscription rights.
It has also been confirmed that the new shares will bear full dividend rights for the current financial year as from 1 January 2023.
At the same time, Talanx’s majority shareholder HDI V.a.G., which currently holds a 78.9% stake in the business, is offering to sell further Talanx shares in the amount of up to €100 million (roughly 0.6% of the current share capital) from its current holdings in order to further increase the free float.
Once the transaction has closed, Talanx’s free float will then increase from 21.1% to approximately 23.2%. However, as a result, HDI V.a.G.’s shareholding will decline to approximately 76.8%.
Following the private placement and subject to customary exceptions, both Talanx and HDI V.a.G. will be subject to a 180-day lock-up, where they are not to issue any additional shares or financial instruments convertible into shares, and not to implement a further capital increase or sell additional existing shares.
Dr Jan Wicke, Talanx AG’s CFO, commented: “This move is our response to repeated requests from investors to increase Talanx’s free float and to lay the foundations for improving the shares’ trading liquidity. In addition, it will strengthen the position of Talanx’s shares in a number of equity indices. This is a positive step for our stock’s future performance. All in all, it means we are laying the foundations for more investors to invest in our shares.”