LONDON (Alliance News) - Charles Taylor PLC Wednesday launched a GBP30.6 million discounted rights issue as it looks to fund potential acquisitions, joint ventures and investments.
The insurance professional services company said the three for seven fully underwritten rights issue has been priced at 155 pence per new share, a discount of 44.9% to the closing price of the existing shares on Tuesday.
Charles Taylor revealed the rights issue as it reported a pretax profit of GBP9.6 million in 2014, up from GBP6.9 million in 2013, as higher revenue in its professional services division more than offset a decline in that reported by its owned insurance companies. Revenue increased to GBP122.8 million from GBP113.6 million.
"We have delivered a strong performance in 2014. Our results also reflect the positive progress we have made in delivering our growth strategy," David Marock, chief executive, said in a statement.
"We are now seeing an increased number and range of potential acquisitions, joint ventures and business investment opportunities for our professional service businesses. We have also identified further opportunities to acquire international life insurance companies that are primarily in run-off, to secure capital releases for the group," Marock said.
The CEO said that "the time is right" to strengthen the company's balance sheet to give it the resources it needs to make acquisitions.
Charles Taylor said it will replace its final dividend for 2014 with a second interim dividend of 7.50 pence, bringing the dividend for the year to 10.75p, up from 10.00p for 2013.
It added that the 155p share issue price is a 34.9% discount to the theoretical ex-rights price after adjusting for the second interim dividend.
Charles Taylor shares were down 0.2% at 280.57 pence early Tuesday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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