Business
Proposed Placing of New Common Shares
Proposed Placing of New Common Shares.
About this update from Lancashire Holdings Limited
[{"type":"text","content":"\n \n THIS ANNOUNCEMENT, INCLUDING THE APPENDICES AND THE INFORMATION IN THEM, IS RESTRICTED AND IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, THE REPUBLIC OF SOUTH AFRICA, JAPAN OR ANY OTHER JURISDICTION IN WHICH SUCH PUBLICATION, RELEASE OR DISTRIBUTION WOULD BE UNLAWFUL.\n FURTHER, THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND IS NOT AN OFFER OF SECURITIES IN ANY JURISDICTION.\n THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.\n LEI: 5493002UNUYXLHOWF752\n For immediate release\n 9 June 2020\n LANCASHIRE HOLDINGS LIMITED\n Proposed Placing of New Common Shares\n Lancashire Holdings Limited (“Lancashire” or the “Company”) announces its intention to issue new equity, in order to take advantage of (re)insurance opportunities related to the increase in rates in the markets in which the Company’s underwriting platforms operate, through a non-pre-emptive placing (the “Placing”) of up to approximately 39.6 million new Common Shares (with a par value of US$0.50 per share in the capital of the Company) (the “Placing Shares”).\n The Placing Shares will not exceed 19.5% of the Company’s existing issued share capital, which, based on the price of 726 pence per common share as at 4.00 p.m. on 9 June 2020, would raise gross proceeds of approximately £287 million (approximately US$365 million).\n The Placing will be conducted through an accelerated bookbuilding process (the “Bookbuild”) which will be launched immediately following this announcement. The Placing is subject to the terms and conditions set out in Appendix 1 to this announcement (which form part of this announcement, such announcement and its Appendices together being this “Announcement”).\n Background to and Reasons for the Placing\n Lancashire intends to use the proceeds of the Placing to fund organic growth and take advantage of rate rises that the Company is currently seeing across the majority of its business lines. Lancashire expects these growth opportunities to be strongly aligned to Lancashire’s core areas of underwriting expertise and relationships.\n Lancashire’s long-term strategy is to deploy more capital into a “hardening” market, in which pricing strengthens due to market capital constraints, and to lower the amount of capital it deploys in “softer” markets, wh...