Advertisement
UK markets closed
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     
  • HANG SENG

    16,541.42
    +148.58 (+0.91%)
     
  • CRUDE OIL

    82.99
    +1.64 (+2.02%)
     
  • GOLD FUTURES

    2,241.50
    +28.80 (+1.30%)
     
  • DOW

    39,807.37
    +47.29 (+0.12%)
     
  • Bitcoin GBP

    56,108.81
    +1,626.86 (+2.99%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • NASDAQ Composite

    16,379.46
    -20.06 (-0.12%)
     
  • UK FTSE All Share

    4,338.05
    +12.12 (+0.28%)
     

Insurer Hastings eyes London listing with $277mln share sale

(Repeats to add coding)

LONDON, Sept 15 (Reuters) - UK insurer Hastings Direct said on Tuesday it plans to raise 180 million pounds ($277.40 million) through a listing on the London Stock Exchange (Other OTC: LDNXF - news) , using the proceeds to reduce debt and strengthen its capital base.

A number of existing shares held by various sharheolders will also be sold, the company said in a statement. Hastings is expected to have a freefloat of at least 25 percent following the listing.

Hastings is expected to have a market value of between 1 billion and 1.5 billion pounds, according to media reports. A spokeswoman for the company declined to comment on these estimates.

ADVERTISEMENT

The net proceeds of the sale will allow the group, one of Britain's fastest growing motor insurers, to strengthen its capital base for future growth and in advance of new Solvency II capital requirements.

"Today's announcement of our intention to float marks the next stage in Hastings' growth story," Gary Hoffman, CEO of Hastings, said in a statement.

The company is expected to list in October, following which the company will be eligible for inclusion in FTSE UK indices.

A holding company comprised of Goldman Sachs Merchant Banking division, certain founders and members of management will remain the largest shareholder.

Hastings intends to adopt an annual dividend of between 50 percent and 60 percent of group profits after tax, adjusted to exclude the impact of non-amortisation, share scheme costs and other non-recurring items.

Credit Suisse Securities and Goldman Sachs (NYSE: GS-PB - news) International are leading the sale. Also underwriting the listing are Barclays (LSE: BARC.L - news) and HSBC, as well as Stiefel Nicolaus Europe Limited and Peel Hunt LLP.

($1 = 0.6489 pounds) (Reporting by Emiliano Mellino, editing by Sinead Cruise)