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REG - Beazley PLC - Beazley plc - results of placing

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RNS Number : 5491G  Beazley PLC  16 November 2022

THIS ANNOUNCEMENT AND THE INFORMATION HEREIN, IS RESTRICTED AND IS NOT FOR
PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN
PART, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, THE REPUBLIC OF SOUTH
AFRICA, JAPAN OR ANY OTHER JURISDICTION IN WHICH SUCH PUBLICATION, RELEASE OR
DISTRIBUTION WOULD BE UNLAWFUL.

PLEASE SEE THE IMPORTANT NOTICE AT THE END OF THIS ANNOUNCEMENT.

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.

Beazley Plc

("Beazley", the "Company" or the "Group")

 

Results of Capital Raise

 

Beazley plc is pleased to announce the successful completion of the Placing,
Subscription and Retail Offer (together the "Capital Raise").

 

A total of 60,403,895 Placing Shares have been placed by J.P. Morgan Cazanove
and Numis, at a price of 575 pence per New Ordinary Share (the "Issue Price").
In addition, retail investors have subscribed via the PrimaryBid platform for
a total of 529,036 Retail Offer Shares at the Issue Price.

 

Certain directors of the Company have participated in the Capital Raise for an
aggregate of 71,386 New Ordinary Shares at the Issue Price either through the
Placing or the Subscription.

 

In aggregate, the Capital Raise of 60,959,017 New Ordinary Shares, represents
approximately 9.99% of the Company's issued ordinary share capital and raised
gross proceeds of approximately £350 million (approximately $417 million),
with strong support from existing shareholders. The Issue Price of 575 pence
represents a discount of 8.0 per cent. to the closing share price of 625 pence
on 15 November 2022.

 

Applications have been made to the Financial Conduct Authority (the "FCA") and
the London Stock Exchange plc (the "LSE") respectively for the admission of
the New Ordinary Shares to the premium listing segment of the Official List of
the FCA and to trading on the main market for listed securities of the LSE
(together, "Admission"). It is expected that Admission will become effective
on or around 8.00 a.m. on 18 November 2022. The Placing is conditional upon,
amongst other things, Admission becoming effective and the Placing Agreement
not being terminated in accordance with its terms.

 

The New Ordinary Shares will, when issued, be credited as fully paid and rank
pari passu with the existing ordinary shares of five pence each ("Ordinary
Shares") in the capital of the Company, including, without limitation, the
right to receive all future dividends and distributions declared, made or paid
after the date of issue of the New Ordinary Shares.

 

Beazley does not currently hold any Ordinary Shares in treasury and,
therefore, following Admission, the total number of Ordinary Shares in issue
in the Company will be 671,161,192. This figure may be used by shareholders as
the denominator for the calculations by which they determine if they are
required to notify their interest in, or a change to their interest in, the
Company under the FCA's Disclosure Guidance and Transparency Rules.

 

Director participation in the Placing

 

The following directors of the Company have agreed to subscribe for the number
of Placing Shares opposite their name as set out below:

 

 

 Name              Number of Placing Shares
 Adrian Cox        26,086
 Sally Cox         13,043
 John Reizenstein  4,347
 Nicola Hodson     1,824

 

 

Director participation in the Subscription

 

The following directors of the Company have agreed to subscribe for the number
of Subscription Shares opposite their name as set out below:

 

 

 Name                     Number of Subscription Shares
 Cecilia Reyes Leuzinger  26,086

 

 

 

Exchange rate

Unless otherwise specified, this Announcement contains certain translations of
pounds sterling into amounts in US Dollars for the convenience of the reader
based on the exchange rate of £1 = $ 1.18955, being the published exchange
rate by Bloomberg (BFIX) at 4.00pm on 15 November 2022.

 

Capitalised terms used in this announcement shall have the same meaning
ascribed to them in the 'Proposed Capital Raise' announcement dated 15
November 2022.

 

This Announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation EU 596/2016 as it forms part of UK law by virtue
of the European Union (Withdrawal) Act 2018. The person responsible for
releasing this announcement is Christine Oldridge (Company Secretary).

 

 

 

For further information:

 

 Beazley

 Sarah Booth, Head of Investor Relations                                   +44 (0) 20 7667 0623

 Sam Whiteley, Content and Media Relations Manager                         +44 (0) 20 7674 7484

 JP Morgan Cazenove (Joint Bookrunner and Joint Corporate Broker)          +44 (0) 20 7742 4000

 Conor Hillery / Claire Brooksby / Virginie de Grivel Nigam / James Lane

 Numis Securities (Joint Bookrunner and Joint Corporate Broker)            +44 (0) 20 7260 1000

 Charles Farquhar / Jamie Loughborough / Giles Rolls / William Baunton

 

 

 

Pre-Emption Group Reporting

 

The Capital Raise is a non-pre-emptive issue of equity securities for cash and
accordingly the Company makes the following post transaction report in
accordance with the most recently published Pre-Emption Group Statement of
Principles (2022).

 

 Name of issuer       Beazley plc

 Transaction details  In aggregate, the Capital Raise of 60,959,017 ordinary shares represents
                      approximately 9.99% of the Company's issued ordinary share capital.

                      Settlement for the New Ordinary Shares and Admission are expected to take
                      place on or before 8.00 a.m. on 18 November 2022.

 Use of proceeds      The use of proceeds of the Capital Raise is to support organic growth and
                      provide growth capital to fund attractive underwriting opportunities while
                      maintaining a strong balance sheet that can withstand a range of stress
                      scenarios.

                      The proceeds of the Capital Raise are not intended to be used for any
                      acquisition or specified capital investment.

 Quantum of proceeds  In aggregate, the Capital Raise represents gross proceeds of approximately
                      £350 million and net proceeds of approximately £337 million.

 Discount             The Issue Price of 575 pence represents a discount of 8.0 per cent. to the
                      closing share price of 625 pence on 15 November 2022.

 Allocations          Soft pre-emption has been adhered to in the allocations process. Management
                      was involved in the allocations process, which has been carried out in
                      compliance with the MIFID II Allocation requirements. Allocations made outside
                      of soft pre-emption were preferentially directed towards existing shareholders
                      in excess of their pro rata, and wall-crossed accounts.

 Consultation         The Joint Bookrunners undertook a pre-launch wall-crossing process, including
                      consultation with major shareholders, to the extent reasonably practicable and
                      permitted by law.

 Retail investors     The Capital Raise included a Retail Offer, for a total of 529,036 Retail Offer
                      Shares, via the PrimaryBid platform.

                      Retail investors, who participated in the Retail Offer, were able to do so at
                      the same Issue Price as all other investors participating in the Placing and
                      Subscription.

                      The Retail Offer was made available to existing shareholders and new investors
                      in the UK. Investors were able to participate through PrimaryBid's platform
                      via its partner network (covering 60+ FCA registered intermediaries) and
                      through PrimaryBid's free-to-use direct channel. Investors had the ability to
                      participate in this transaction through ISAs and SIPPs, as well as General
                      Investment Accounts (GIAs). This combination of participation routes meant
                      that, to the extent practicable on the transaction timetable, eligible UK
                      retail investors (including certificated retail shareholders) had the
                      opportunity to participate in the Capital Raise alongside institutional
                      investors.

                      Allocation preference was given to existing shareholders pursuant to the
                      Retail Offer in keeping with the principle of soft pre-emption.

 

 

 

 

IMPORTANT NOTICES

 

This announcement and the information contained in it (this "Announcement") is
not for publication, release or distribution, in whole or in part, directly or
indirectly, in or into the United States, Australia, Canada, Japan or South
Africa or any other jurisdiction in which publication, release or distribution
would be unlawful. This Announcement is for information purposes only and does
not constitute an offer to sell or issue, or the solicitation of an offer to
buy, acquire or subscribe for shares in the capital of the Company in the
United States, Australia, Canada, Japan or South Africa or any other state or
jurisdiction in which such offer or solicitation is not authorised or to any
person to whom it is unlawful to make such offer or solicitation. Any failure
to comply with these restrictions may constitute a violation of the securities
laws of such jurisdictions. The Placing Shares have not been and will not be
registered under the U.S. Securities Act of 1933 (the "Securities Act") or
with any securities regulatory authority of any state or other jurisdiction of
the United States and may not be offered, sold or transferred, directly or
indirectly, in or into the United States except pursuant to an exemption from,
or in a transaction not subject to, the registration requirements of the
Securities Act and in compliance with any applicable securities laws of any
state or other jurisdiction of the United States. The Placing Shares are being
offered and sold outside the United States in accordance with Regulation S
under the Securities Act.

No public offering of the Placing Shares is being made in the United States,
United Kingdom or elsewhere.

No prospectus will be made available in connection with the matters contained
in this Announcement and no such prospectus is required (in accordance with
the Prospectus Regulation) to be published. This Announcement and the terms
and conditions set out herein are for information purposes only and are
directed only at: (a) if in a member state of the European Economic Area (the
"EEA"), persons who are "qualified investors" within the meaning of article
2(e) of the Regulation (EU) 2017/1129 (the "EU Prospectus Regulation"
("Qualified Investors"); and (b) if in the United Kingdom, persons who are
"qualified investors" within the meaning of Article 2(e) of the UK version of
Regulation (EU) 2017/1129 as it forms part of UK law by virtue of the European
Union (Withdrawal) Act 2018 (the "UK Prospectus Regulation") who (i) have
professional experience in matters relating to investments falling within the
definition of "investment professionals" in article 19(5) of the Financial
Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended
(the "Order"), or (ii) fall within article 49(2)(a) to (d) ("high net worth
companies, unincorporated associations, etc") of the Order; and (c) persons to
whom it may otherwise be lawfully communicated, (all such persons together
being referred to as "Relevant Persons"). No other person should act or rely
on this Announcement and persons distributing this Announcement must satisfy
themselves that it is lawful to do so. By accepting the terms of this
Announcement, you represent and agree that you are a Relevant Person, if in
the United Kingdom, or a Qualified Investor, if in a member state of the EEA.
This Announcement must not be acted on or relied on by persons who are not
Relevant Persons, if in the United Kingdom, or Qualified Investors, if in a
member state of the EEA. Any investment or investment activity to which this
Announcement or the Placing relates is available only to Relevant Persons, if
in the United Kingdom, and Qualified Investors, if in a member state of the
EEA, and will be engaged in only with Relevant Persons, if in the United
Kingdom, and Qualified Investors, if in a member state of the EEA.

No offering document or prospectus will be made available in any jurisdiction
in connection with the matters contained or referred to in this Announcement
or the Placing and no such offering document or prospectus is required (in
accordance with the EU Prospectus Regulation or UK Prospectus Regulation) to
be published.

All offers of the Placing Shares will be made pursuant to an exemption under
the UK Prospectus Regulation from the requirement to produce a prospectus.
This Announcement is being distributed and communicated to persons in the
United Kingdom only in circumstances in which section 21(1) of FSMA does not
apply.

This Announcement has been issued by, and is the sole responsibility of, the
Company. No representation or warranty, express or implied, is or will be made
as to, or in relation to, and no responsibility or liability is or will be
accepted by JPMC or Numis, or by any of their respective affiliates or agents
as to or in relation to, the accuracy or completeness of this Announcement or
any other written or oral information made available to or publicly available
to any interested party or its advisers, and any liability therefore is
expressly disclaimed.

JPMC is authorised by the Prudential Regulatory Authority and regulated in the
United Kingdom by the Prudential Regulatory Authority and the Financial
Conduct Authority (the "FCA"). Numis is authorised and regulated in the United
Kingdom by the FCA. Each of JPMC and Numis is acting solely for the Company
and no one else in connection with the Placing and will not be responsible to
anyone other than the Company for providing the protections afforded to their
respective clients nor for providing advice in relation to the Placing and/or
any other matter referred to in this Announcement. Apart from the
responsibilities and liabilities, if any, which may be imposed on JPMC and
Numis by FSMA or by the regulatory regime established under it, neither JPMC
nor Numis nor any of their respective affiliates accepts any responsibility
whatsoever for the contents of the information contained in this Announcement
or for any other statement made or purported to be made by or on behalf of
JPMC and Numis or any of their respective affiliates in connection with the
Company, the Placing Shares or the Placing. JPMC and Numis and each of their
respective affiliates accordingly disclaim all and any responsibility and
liability whatsoever, whether arising in tort, contract or otherwise (save as
referred to above) in respect of any statements or other information contained
in this Announcement and no representation or warranty, express or implied, is
made by JPMC or Numis or any of their respective affiliates as to the
accuracy, completeness or sufficiency of the information contained in this
Announcement.

The distribution of this Announcement and the offering of the Placing Shares
in certain jurisdictions may be restricted by law. No action has been taken by
the Company, JPMC or Numis or any of their respective affiliates that would,
or which is intended to, permit an offering of the Placing Shares in any
jurisdiction or result in the possession or distribution of this Announcement
or any other offering or publicity material relating to Placing Shares in any
jurisdiction where action for that purpose is required. Persons into whose
possession this Announcement comes are required by the Company and Joint
Bookrunners to inform themselves about, and to observe, such restrictions.

This Announcement contains (or may contain) certain forward-looking statements
with respect to certain of the Company's current expectations and projections
about future events. These statements, which sometimes use words such as
"aim", "anticipate", "believe", "intend", "plan", "estimate", "expect" and
words of similar meaning, reflect the directors' beliefs and expectations and
involve a number of risks, uncertainties and assumptions which could cause
actual results and performance to differ materially from any expected future
results or performance expressed or implied by the forward-looking statement.
Statements contained in this Announcement regarding past trends or activities
should not be taken as a representation that such trends or activities will
continue in the future. The information contained in this Announcement is
subject to change without notice and, except as required by applicable law,
the Company does not assume any responsibility or obligation to update
publicly or review any of the forward-looking statements contained in it and
nor do they intend to. You should not place undue reliance on forward-looking
statements, which speak only as of the date of this Announcement. No statement
in this Announcement is or is intended to be a profit forecast or profit
estimate or to imply that the earnings of the Company for the current or
future financial years will necessarily match or exceed the historical or
published earnings of the Company. As a result of these risks, uncertainties
and assumptions, the recipient should not place undue reliance on these
forward-looking statements as a prediction of actual results or otherwise.

This Announcement does not identify or suggest, or purport to identify or
suggest, the risks (direct or indirect) that may be associated with an
investment in the Placing Shares. Any investment decision to buy Placing
Shares in the Placing must be made solely on the basis of publicly available
information, which has not been independently verified by JPMC or Numis.

The information in this Announcement may not be forwarded or distributed to
any other person and may not be reproduced in any manner whatsoever. Any
forwarding, distribution, reproduction or disclosure of this information in
whole or in part is unauthorised. Failure to comply with this directive may
result in a violation of the Securities Act or the applicable laws of other
jurisdictions.

This Announcement does not constitute an invitation to underwrite, subscribe
for or otherwise acquire or dispose of any securities in any jurisdiction.
This Announcement does not constitute a recommendation concerning any
investor's option with respect to the Placing. Each investor or prospective
investor should conduct his, her or its own investigation, analysis and
evaluation of the business and data described in this Announcement and
publicly available information. The price and value of securities can go down
as well as up. Past performance is not a guide to future performance.

The Placing Shares to be issued pursuant to the Placing will not be admitted
to trading on any stock exchange other than the London Stock Exchange.

Neither the content of the Company's website nor any website accessible by
hyperlinks on the Company's website is incorporated in, or forms part of, this
Announcement.

UK Product Governance Requirements

Solely for the purposes of the product governance requirements contained
within the FCA Handbook Product Intervention and Product Governance Sourcebook
(the "UK Product Governance Rules"), and disclaiming all and any liability,
whether arising in tort, contract or otherwise, which any 'manufacturer' (for
the purposes of the UK Product Governance Rules) may otherwise have with
respect thereto, the Placing Shares have been subject to a product approval
process, which has determined that such Placing Shares are: (i) compatible
with an end target market of: (a) investors who meet the criteria of
professional clients as defined in point (8) of Article 2(1) of Regulation
(EU) No 600/2014 as it forms part of domestic UK law by virtue of the European
Union (Withdrawal) Act 2018; (b) eligible counterparties, as defined in the
FCA Handbook Conduct of Business Sourcebook ("COBS"); and (c) retail clients
who do not meet the definition of professional client under (b) or eligible
counterparty per (c); and (ii) eligible for distribution through all
distribution channels as are permitted by Directive 2014/65/EU (the "UK target
market assessment"). Notwithstanding the UK target market assessment,
distributors should note that: the price of the Placing Shares may decline and
investors could lose all or part of their investment; the Placing Shares offer
no guaranteed income and no capital protection; and an investment in the
Placing Shares is compatible only with investors who do not need a guaranteed
income or capital protection, who (either alone or in conjunction with an
appropriate financial or other adviser) are capable of evaluating the merits
and risks of such an investment and who have sufficient resources to be able
to bear any losses that may result therefrom. The UK target market assessment
is without prejudice to the requirements of any contractual, legal or
regulatory selling restrictions in relation to the placing. Furthermore, it is
noted that, notwithstanding the UK target market assessment, the Banks will
only procure investors who meet the criteria of professional clients and
eligible counterparties. For the avoidance of doubt, the UK target market
assessment does not constitute: (a) an assessment of suitability or
appropriateness for the purposes of COBS 9A and COBS 10A, respectively; or (b)
a recommendation to any investor or group of investors to invest in, or
purchase or take any other action whatsoever with respect to the Placing
Shares.

Each distributor is responsible for undertaking its own UK target market
assessment in respect of the Placing Shares and determining appropriate
distribution channels.

NOTWITHSTANDING ANYTHING IN THE FOREGOING, NO PUBLIC OFFERING OF THE PLACING
SHARES IS BEING MADE BY ANY PERSON ANYWHERE AND THE COMPANY HAS NOT AUTHORISED
OR CONSENTED TO ANY SUCH OFFERING IN RELATION TO THE PLACING SHARES.

 

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