IAG to buy Wesfarmers NZ, Australian underwriting for A$1.85B

Mon, 16 Dec 2013

Dec. 16 (BusinessDesk) – Insurance Australia Group has agreed to buy the New Zealand and Australian underwriting businesses of Wesfarmers for A$1.85 billion, to bolster its position in the two markets. IAG would acquire Wesfarmers’ WFI and Lumley Insurance brands as well as a 10-year distribution agreement with Coles, it said in a statement today. The insurer will fund the transaction via a fully-underwritten A$1.2 billion institutional placement, of about 219 million shares at a discounted price of A$5.47 apiece, a non-underwritten share pu...

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