Chesnara plc's Major Acquisition of HSBC Life (UK)

Chesnara plc has unveiled a significant acquisition, purchasing HSBC Life (UK) for £260 million. This acquisition represents over 70% of Chesnara's market capitalisation prior to the announcement. The financing strategy involves a blend of equity, existing cash — sourced mainly from a previous Tier 2 bond issue — and a newly augmented revolving credit facility.

The rights issue is expected to conclude by 23 July 2025, with the acquisition finalising in early 2026. Significantly, there will be a one-time 6% uplift in the dividend per share, adjusted for the rights issue, affecting both the 2025 final and 2026 interim dividends, bolstering returns for shareholders.