Delta Lloyd sets out terms of €650m rights issue

Dutch insurer Delta Lloyd has set out the terms for its €650m rights issue, in a bid to improve its capital position in line with Solvency II.

The rights issue has been controversial among shareholders, with US fund manager Highfields, which holds a 14% share, took Delta Lloyd to court at the beginning of March.

Prior to that, the group had already reduced the scale of the issue, which was initially proposed to amount to €1bn.

However, with the backing of Dutch central bank and regulator DNB, Delta Lloyd won the case at the Enterprise Court of Amsterdam and narrowly gained shareholder approval for the €650m issue last week.

According to the terms set out today, Delta Lloyd is set to issue  227.567,943 new ordinary shares at a subscription price of €2.85 per new ordinary share, leading to approximately €648.6m in gross proceeds, the rump offering is expected to take place on 7 and 8 April.

With the additional income from the rights issue, the insurer hopes to expand its capital ratio to by 25% to a total of 150%, in line with Solvency II requirements.

Mona Dohle
Mona Dohle speaks German and Dutch, she is DACH & Benelux Correspondent for InvestmentEurope. Prior to that, she worked as a journalist in Egypt and Palestine. She started her career as a journalist working for a local German newspaper. Mona graduated with an MSc in Development Studies from SOAS and has completed the CISI Certificate in International Wealth and Investment Management.

Read more from Mona Dohle

Close Window
View the Magazine

I also agree to receive editorial emails from InvestmentEurope
I also agree to receive event communications for InvestmentEurope
I also agree to receive other communications emails from InvestmentEurope
I agree to the terms of service *

You need to fill all required fields!