In a blockbuster move that could reshape the U.K. life insurance landscape, Chesnara PLC announced Thursday that it has inked a £260 million ($355 million) deal to acquire HSBC Life (UK) Ltd., marking a bold leap in scale and ambition for the FTSE All-Share-listed pensions consolidator.
The strategic acquisition, which is subject to regulatory approval and expected to close in early 2026, would add 454,000 new policies and £4 billion in assets under administration, pushing Chesnara’s total to 1.4 million policies and approximately £18 billion in assets.
Financing the Deal: Cash, Debt, and Deep Discount Equity
To fund the acquisition, Chesnara will deploy a three-pronged financial strategy:
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£55 million from existing cash reserves
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£65 million in new debt
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£140 million via a rights issue involving nearly 80 million new shares priced at 176 pence each, a steep 40% discount to the firm’s recent closing price of 293.5 pence.
This deep-discount equity raise is underwritten by RBC Europe Ltd. and ABN AMRO Bank NV, with Panmure Liberum acting as joint bookrunner. The new shares are slated to begin trading on the London Stock Exchange on July 23.
