"This transaction materially increases the scale of our UK business and is expected to enhance the sustainability and longevity of the group’s cash generation."
- Steve Murray, CEO of Chesnara
Earlier this month, Chesnara announced that it has entered into an agreement to acquire HSBC Life (UK) from HSBC Bank for a total consideration of £260mn.
This acquisition would transform Chesnara’s scale in the UK, adding approximately £4bn of assets under administration and 454k policies - creating a combined group with approximately £18bn in total assets and 1.4mn policies.
READ MORE: HSBC Life UK to be acquired for £260mn
In a stock exchange statement this morning, Chesnara confirmed it had successfully raised gross proceeds of £140mn to support the proposed £260mn acquisition. The remaining cash consolidation will be funded through £55mn in existing internal cash resources and a £65mn drawdown from the group's £150mn revolving credit facility.
Chesnara expects to complete this acquisition in early 2026, subject to customary regulatory approvals.
“I’m pleased to announce we have successfully raised gross proceeds of £140mn to support the financing of our proposed acquisition of HSBC Life UK. This transaction materially increases the scale of our UK business and is expected to enhance the sustainability and longevity of the group’s cash generation.
“I’d like to thank our shareholders for their support of our growth strategy as we look to extend on our 20-year track record of uninterrupted dividend growth,” said Steve Murray, CEO of Chesnara.
