07/07/2025
We’re delighted to have helped life and pensions company Chesnara PLC with its £140m Rights Issue in connection with a proposed £260m cash acquisition of banking giant HSBC's UK life insurance business.
Following the acquisition, Chesnara expects eligibility for FTSE 250 inclusion after increasing liquidity. The deal is set to create cash generation in excess of £800m for Chesnara, with £140m during the first five years post-acquisition.
For HSBC, the sale of HSBC Life (UK) comes as it looks to simplify its business and improve returns under CEO Georges Elhedery.
The acquisition is expected to close in early 2026, subject to regulatory approvals. Chesnara, which was formed in 2004 and has operations in the UK and Europe, reported assets under administration of £14bn as of December 31, 2024.
Steve Murray, chief executive, said: “The proposed acquisition of HSBC Life (UK) represents a material step up in scale for Chesnara Group. This highly accretive transaction will allow us to build on our strong, 20-year track record of uninterrupted dividend growth.”
Our thanks to our wonderful clients at Chesnara and Sponsor, Global Coordinator, Joint Bookrunner and Underwriter RBC Europe Limited, legal advisors Pinsent Masons, Ashurst and Proskauer, Joint Bookrunner and Underwriter ABN Amro Bank and Joint Bookrunner Panmure Liberum.
If you'd like to find out how we can help ensure the success of your Equity Fundraisings and M&A transactions, chat with us today: hello@blackandcallow.com
