Toronto-based Manulife Financial Corp. does not intend to raise common share equity capital in the absence of a strategic transaction, the company announced.
Although equity markets have declined since the beginning of the year, Manulife continues to be well capitalized and is able to withstand additional equity volatility, it added.
Manulife recently filed in the ordinary course with Canadian securities regulators a renewal preliminary shelf prospectus similar to many other companies. It also filed a new preliminary shelf prospectus with U.S. regulators.
These documents are intended to provide maximum flexibility for Manulife to take advantage of the many acquisition opportunities available in current markets. Any such acquisitions would be principally funded through common share equity at the time of the acquisition.
“Given our financial strength, we may be one of the few global companies able to do a large strategic acquisition in these opportunistic markets,” said Dominic D’Alessandro, president and CEO. “We continue to be very disciplined in our approach. Any transaction must be beneficial to our shareholders and must maintain our capital position for the benefit of our policyholders.”
The shelf prospectus will also enable Manulife to refinance its debt and other obligations in the ordinary course through the issue of debt and preferred shares as market conditions allow.
Manulife denies speculation of common share equity raise
Manulife continues to be well capitalized and is able to withstand additional volatility
- By: IE Staff
- February 23, 2009 February 23, 2009
- 10:17