Chesnara has raised £140m towards its £260m purchase of HSBC Life (UK).
It raised the cash through a share rights issue which received 88% take-up that was launched alongside the announcement of the HSBC Life purchase earlier this month.
The 10 for 19 rights issue of 79,539,337 new ordinary shares at 176 pence closed for acceptances with 70,176,824 being taken up.
If subscribers for the remaining 9,361,073 new ordinary shares are not found then RBC and ABN AMRO will purchase them.
Earlier this month Health & Protection revealed that Chesnara was considering the possibilities of retaining the protection insurance new business operations of HSBC Life when it takes over the firm.
Around 230 staff will transfer and Health & Protection also understands that includes HSBC Life (UK) CEO Mark Hussein.
Sources close to the deal told Health & Protection that aside from a small crossover period it is expected that the Countrywide Assured and Chesnara Group brands will be used for the business.
Previously, advisers told Health & Protection they would miss HSBC Life’s immediate decision process and its dual approach to critical illness cover should it be closed to new business.
Commenting on the rights offer Chesnara chief executive officer Steve Murray said: “I am pleased to announce we have successfully raised gross proceeds of £140m to support the financing of our proposed acquisition of HSBC Life (UK).
“This transaction materially increases the scale of our UK business and is expected to enhance the sustainability and longevity of the group’s cash generation.
“I’d like to thank our shareholders for their support of our growth strategy as we look to extend on our 20-year track record of uninterrupted dividend growth.”
