Phoenix Group to Buy Abbey Life From Deutsche Bank Unit for GBP935 Million

   By Ian Walker

LONDON--Phoenix Group Holdings (PHNX.LN) said Wednesday it is buying Abbey Life from a unit of Deutsche Bank AG (DBK.XE) for 935 million pounds ($1.22 billion), in a deal that will add GBP10 billion of assets under management and 735,000 new policyholders.

The FTSE 250-listed insurance company plans to fund the deal through a GBP735 million seven-for-12 rights issue and a new GBP250 million bank facility. It will offer the rights' shares to existing shareholders at 508 pence a share, a 65% discount to Tuesday's closing share price of 838.5 pence.

Phoenix said the deal is expected to generate GBP0.5 billion of cashflows between 2016 and 2020 and GBP1.1 billion from 2021 onwards, supporting its planned dividend increases.

Phoenix is buying Abbey Life Assurance Company Ltd., Abbey Life Trustee Services Ltd., and Abbey Life Trust Securities Ltd., from Deutsche Holdings No. 4 Ltd.

Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749

(END) Dow Jones Newswires

September 28, 2016 03:35 ET (07:35 GMT)

Deutsche Bank Aktiengese... (NYSE:DB)
Historical Stock Chart
From Mar 2024 to Apr 2024