U.K.’s Beazley to Raise $190 Million to Fund Omaha Insurance Acquisition

November 2, 2004

Lloyd’s insurer Beazley Furlonge Ltd. announced that it plans to raise £105 million ($191 million) through a rights issue, to both strengthen its capital position, and to fund the acquisition of Omaha Insurance Company.

Beazley will issue four new shares for every seven existing ones, which will increase the company’s market value to more than £300 million ($546 million). The new shares are to be offered at 84 pence (around $1.52) an 8 per cent discount off its recent share price.

Beazley plans to use approximately £12 million ($22 million) of the new capital to fund the acquisition, and an additional £22 million to increase Omaha’s capitalization. The remainder will be used to increase the group’s participation in its two Lloyd’s underwriting syndicates.

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