Tryg A/S launched a private placement of shares to help fund its 8.2 billion-kroner acquisition of fellow Danish insurer Alka Forsikring AS.
Tryg will offer up to 27.4 million new shares through a private placement with Danish and international institutional investors, excluding those in the U.S., Canada, Australia, South Africa or Japan. The shares will be placed at market price through an accelerated book building process.
TryghedsGruppen smba, which is Tryg's largest shareholder, has offered to subscribe pro rata for 60% of the new shares at the price determined through the book building process, and also agreed to underwrite the entire offering at 146 Danish kroner per share.
Tryg had 274,544,000 shares in issue as of Sept. 30, according to S&P Global Market Intelligence data. Shares in the company closed down 2.9% at 152.8 kroner apiece in Dec. 5 trading.
Based on the Dec. 5 closing price, an offering of 27.4 million shares would raise 4.19 billion kroner. Based on the 146 kroner price guaranteed by TryghedsGruppen, the offering would raise 4.00 billion kroner.
The offer period runs through Dec. 6, although it may be shortened, and pricing is expected to be announced by the same date. The shares are expected to be admitted for trading Dec. 11.
Nordea is serving as sole book runner on the offering.
As of Dec. 4, US$1 was equivalent to 6.28 Danish kroner.
