LONDON (dpa-AFX) - The Board of Phoenix Group Holdings plc (PHNX.L) announced the proposed acquisition of ReAssure Group plc. The total consideration of 3.2 billion pounds payable to Swiss Re and MS&AD Insurance, the shareholders in ReAssure, will be financed through: a cash consideration of 1.2 billion pounds, and the issuance to Swiss Re of consideration shares with a value of 2.0 billion pounds, part of which will be transferred to MS&AD. Completion of the deal is targeted for mid-2020. Following the acquisition, each of Swiss Re and MS&AD will have strategic shareholdings totalling approximately 28 percent of the enlarged Phoenix Group.
The acquisition is expected to generate a total of 7.0 billion pounds of additional aggregate cash flows taking total long-term cash generation of the enlarged Group to 19.0 billion pounds. The integration of ReAssure is expected to create synergies net of integration costs of 800 million pounds.
Phoenix expects to increase its current dividend per share by 3 percent, payable from the date of the final 2020 dividend. This will result in an increase in the annualised dividend per share from 46.8 pence to 48.2 pence.
CEO, Clive Bannister, said: 'The deal confirms Phoenix's position as Europe's largest life and pensions consolidator with 329 billion pounds of assets under administration and 14.1 million policies and will give us an enhanced platform to pursue further growth opportunities, including Bulk Purchase Annuities.'
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