Helvetia Holding AG ("Helvetia" or the "Company") launches the private placement of up to 3.4 million new registered shares (the "New Shares") with a par value of CHF 0.02 per share (the "Share Placement"). In January 2020, Helvetia announced the acquisition of a 70% majority interest in the Spanish insurer Caser (Caja de Seguros Reunidos, Compañía de Seguros y Reaseguros S.A.) for around EUR 780 million (the "Acquisition"). The required regulatory approvals have now been obtained. The net proceeds from the Share Placement will be used to partly finance the Acquisition. As previously communicated, Helvetia intends to finance the remaining part of the Acquisition by issuing hybrid capital subject to market conditions. The Acquisition is expected to further strengthen Helvetia's European business as a second pillar, significantly expand Helvetia's attractive non-life business and increase its distribution capabilities in Spain.
The New Shares, corresponding to up to 6.8% of Helvetia's currently issued share capital, will be issued from the Company's existing authorised share capital. The Share Placement excludes subscription rights for existing shareholders. The New Shares will be offered via a private placement exclusively to professional investors in Switzerland and qualified investors outside of Switzerland and the US. The issue price of the New Shares (the "Issue Price") will be determined in an accelerated bookbuilding process, which will start immediately. The Issue Price as well as the number of New Shares to be issued will be announced upon completion of the bookbuilding process, which is expected prior to market opening on or around 18 June 2020.
Helvetia's anchor shareholder Patria Genossenschaft unreservedly supports the acquisition and has committed to purchase New Shares at the Issue Price in proportion to its current shareholding of 34.09% in Helvetia.
The New Shares are expected to be listed and admitted to trading on SIX Swiss Exchange as per 22 June 2020. Payment and settlement is expected to take place on or around 22 June 2020. The New Shares will rank pari passu with the existing shares.
In connection with the Share Placement, both Helvetia and Patria Genossenschaft have agreed to a 120-day lock-up period after the listing of the New Shares, subject to certain exceptions.
This media release is also available on our website www.helvetia.com/media