Chesnara PLC (LSE:CSN) said it had successfully closed its £140 million rights issue, a key funding plank for its £260 million acquisition of HSBC Life's UK business - a deal the company expects to be 'highly accretive'.
"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," said CEO Steve Murray.
"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."
New stock was issued on a 10-for-19 basis at 176p each. The company received acceptances for 70.2 million shares, about 88% of the total offered.