LONDON (Reuters) -Life and pensions company Chesnara has agreed to buy HSBC's UK life insurance business for 260 million pounds ($355 million) in cash, Chesnara said on Thursday. The sale of HSBC Life
Chesnara to buy HSBC Life UK in $355 million deal
LONDON (Reuters) -Life and pensions company Chesnara has agreed to buy HSBC's UK life insurance business for 260 million pounds ($355 million) in cash, Chesnara said on Thursday.
The sale of HSBC Life (UK) is the latest by the banking giant as it looks to simplify its business and improve returns under CEO Georges Elhedery.
Chesnara said it expected to generate over 800 million pounds in additional lifetime cash flow from HSBC Life (UK), with annual cash generation exceeding 140 million pounds in the first five years.
It said the deal would be funded from a combination of existing cash resources, the firm's revolving credit facility and a sale of new shares to existing shareholders.
Chesnara said it intended to raise gross proceeds of about 140 million pounds through a rights issue of 79.5 million shares at 176 pence per share, with shareholders getting 10 new ordinary shares for every 19 shares they currently hold.
Chesnara shares closed at 293.5 pence on Wednesday and were little changed in early London trading.
The acquisition is expected to close in early 2026, subject to regulatory approvals.
Chesnara, which was formed in 2004 and has operations in the UK and Europe, reported assets under administration of 14 billion pounds ($18.7 billion) as of December 31, 2024.
($1 = 0.7327 pounds)
(Reporting by Chandini Monnappa in Bengaluru. Editing by Rashmi Aich and Mark Potter)
