Just Retirement raises £101m through share offer

Just Retirement raises £101m through share offer

Just Retirement today confirmed 11.3m new ordinary shares have been snapped up by Avallux, a subsidiary of international private equity firm Permira, for £17.9m.

In August 63.5m new Just Retirement shares were made available at a price of £1.59 a share and the offer closed at 11am yesterday (13 October).

In March Avallux sold 50 million shares in Just Retirement, reducing its 62 per cent stake to 52 per cent.

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Avallux’s latest share purchase means it now has a 48.4 per cent stake in the specialist annuity provider.

It was last month that Partnership Assurance Group and Just Retirement Group, who have proposed a £1.6bn merger, announced plans to raise £150m through two share placings to help meet the costs of combining the businesses.

Partnership stated it would issue around just under 40m new ordinary shares of 10 pence each representing almost 10 per cent of the company’s ordinary share capital.

Partnership completed its share offer last month, with just under 40m new ordinary shares of 10p each being placed at a price of £1.35 a share, raising proceeds of £54m (before expenses).

Partnership’s private equity backers the Cinven Funds subscribed for 11,206,585 placing shares for a total consideration of £15.1m.

Following admission, the Cinven Funds were set to hold 218.8 million ordinary shares, representing a shareholding of 49.7 per cent.