Company will sell C$1.6 billion more receipts in public offering
By Angela McDaniels
Tacoma, Wash., Sept. 3 – Manulife Financial Corp. plans to sell C$500 million of subscription receipts to Caisse de dépôt et placement du Quebec in a private placement.
The investor agreed to purchase 23,786,870 subscription receipts for C$21.50 each, which is a 3% discount to the company’s C$22.16 closing share price on Sept. 2.
The proceeds of the placement and a C$1.6 billion public bought-deal offering of subscription receipts will be used to help fund the C$4 billion acquisition of the Canadian-based operations of Standard Life plc. The balance of the acquisition funding will come from internal resources and possible future debt and/or preferred share issuances.
Once the acquisition closes, holders will automatically receive for each subscription receipt one common share of Manulife together with an amount equal to the per-share dividends Manulife declares on its common shares, if any, for record dates that occur in the period from and including the closing date of the offering to but excluding the date the acquisition closes, net of any applicable withholding taxes.
Purchasers of the subscription receipts will not be entitled to receive any dividend equivalent for the dividend payable Sept. 19.
The closing of the private placement is conditioned on the closing of the public offering, which is expected to occur Sept. 15.
Manulife is a financial services group based in Toronto.
| Issuer: | Manulife Financial Corp.
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| Issue: | Subscription receipts
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| Amount: | C$500 million
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| Receipts: | 23,786,870
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| Price: | C$21.50
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| Warrants: | No
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| Investor: | Caisse de dépôt et placement du Québec
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| Pricing date: | Sept. 3
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| Stock symbol: | Toronto: MFC
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| Stock price: | C$22.36 at close Sept. 3
|
| Market capitalization: | C$41.55 billion
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