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Tysers parent AUB Group raises A$150m for M&A drive via private placement

19th May 2023 - Author: Jack Willard

Tysers parent AUB Group, has announced that it has successfully raised A$150 million to support its “attractive M&A pipeline”, after completing an oversubscribed placement of 6.25 million new fully paid ordinary shares at A$24.00 per share.

According to the announcement, the shares represent a 7.2% discount to the last traded price of A$25.86 on Wednesday, 17 May 2023.

Moreover, the placement was strongly supported by both domestic and offshore institutional investors with demand received significantly exceeding the placement size.

AUB Group also confirmed that given the very strong demand, all new shares under the placement are being allocated to existing shareholders.

Elsewhere, the proceeds also replace a contemplated cash inflow of A$100 million that will not eventuate following AUB not proceeding with a proposed joint venture with PSC Insurance Group Limited in respect of AUB’s Tysers UK Retail business.

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AUB’s CEO, Mike Emmett, commented: “We are very pleased with the equity raising outcome and believe it is a testament to the strong performance of both AUB and the Tysers business. We continue to focus on delivering our strategy by combining strong organic performance with executing accretive M&A. This raising provides us the financial flexibility required to capitalise on our attractive M&A pipeline, so we thank our investors for their continued support.”

In addition to the placement, AUB also stated that it intends to undertake a non-underwritten SPP targeting to raise up to approximately A$15 million.

In September 2022, AUB completed its acquisition of wholesale broker Tysers, after discussions around the transaction first took place in April 2022.

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