Great-West Lifeco Inc. will raise $1 billion in common equity, the Winnipeg-based insurer said Tuesday.
The proceeds will be used to raise its capital levels and to allow it to jump on acquisition opportunities, the company said.
A syndicate of underwriters led by BMO Nesbitt Burns Inc. will buy 28,920,000 shares at $20.75 apiece, or $600,090,000 in total, which will be sold to the public.
Great-West’s parent company, Power Financial Corp., will buy 19,280,000 shares at the same price.
“For many years, Great-West Life and its subsidiaries have pursued a risk-averse strategy with respect to both liabilities and assets. Consequently, today the company’s balance sheet is one of the strongest in its industry. With this issue, the company will move forward with an enhanced capability to take advantage of market opportunities,” said Allen Loney, president and CEO of Great-West Lifeco, in a release.
Great-West Lifeco plans $1 billion common share offering
Proceeds to raise insurer’s capital levels, fund acquistions
- By: IE Staff
- December 10, 2008 December 10, 2008
- 08:10