The Paris-based SCOR Group confirmed that it has completed the previously announced subscription and sale of the equivalent of 99 million new shares, raising 381 million Euros ($390 million).
The new funds came mostly from European investors – No securities were offered or issued in the U.S. Canada, Japan or Australia – and succeeded in placing subscriptions for 98.26 million shares “on an irreducible basis.” SCOR also placed pro-rata reducible orders for an additional 24.27 million shares, “only 759,132 of which remained available and were allocated.” SCOR will have 136,544,845 outstanding shares as of December 31.
The company stated that France’s Groupama remains its largest shareholder with an approximate19.23% stake. Other French and non-French institutional investors in roughly equal proportions hold an additional 45 percent of SCOR’s shares.
Denis Kessler, the company’s recently appointed Chairman and CEO, who also heads the French Insurers’ trade organization, stated that “The strengthening of its equity allows SCOR to maintain its underwriting capacities in the segments of activity that were identified as offering the best prospects for profitability, as presented on November 18 in the ‘Back on Track’ recovery plan.”
He expressed his appreciation for the continued support from the group’s shareholders, and indicated that the capital increase “is the first step of the plan that is designed to allow SCOR to get back on the path to profitability in 2003. The success of this offering is a first sign that SCOR is regaining the market’s confidence.”
He added that the “next step of the recovery plan, involving changes in SCOR Group’s organisation, will be announced at the end of January 2003.”
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