LONDON (Alliance News) - Charles Taylor PLC Thursday said that shareholders took up 89.43% of new shares on offer under the rights issue it launched last month.
According to Charles Taylor, which provides professional services to insurers and operates life insurance businesses in run-off, underwriter Peel Hunt will aim to find buyers of the new shares not taken up under the 3-for-7 rights issue of 19.7 million shares. If Peel Hunt is unable to fund buyers for the some 2.1 million shares, it will buy them itself.
Charles Taylor's GBP30.6 million rights issue, which was priced at 155 pence per share, was undertaken in order to fund potential acquisitions, joint ventures and investments.
Last week Charles Taylor said it had decided against going ahead with the purchase of a life insurance business after deciding that a deal would not have met its financial criteria. That acquisition may also have required further financing on top of the rights issue.
Charles Taylor remains on the hunt for acquisitions in the price range of between GBP5 million and GBP10 million.
It is looking for professional services business that fit in with its existing operations or international life insurance companies that are primarily in run-off.
Charles Taylor shares were flat at 240.00 pence on Thursday morning. The stock has gained about 60% since David Marock became chief executive in July 2011.
The company's results for 2014, released last month, showed that pretax profit increased to GBP9.6 million from GBP6.9 million in 2013 and were notable for including for including the first increase in its dividend since the payment to shareholders was rebased for 2010.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
Copyright 2015 Alliance News Limited. All Rights Reserved.
