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Steadfast raises $100 million through share placement

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Steadfast has raised $100 million through a share placement to institutions, providing funds for its purchase of Whitbread Insurance Group.

The company placed about 35.3 million shares at an issue price of $2.83, representing a 3.4% discount to the December 1 closing price.

“The placement was oversubscribed and very well supported by our existing institutional shareholders, with strong demand also coming from new institutional shareholders,” CEO Robert Kelly said.

“The acquisition of Whitbread represents an exciting opportunity. We are very pleased to see such strong support from our shareholders, which is an endorsement of the success of our well-proven strategic direction.”

Steadfast last week said it will also raise up to $25 million through a share purchase plan open to all eligible shareholders, including retail stock owners.

The offer opens on Wednesday and closes on January 22.

The company will also issue about 6 million shares to Whitbread Insurance Group vendors as part of the acquisition announced last Monday.

Steadfast is paying $95 million for the group, which comprises Whitbread Insurance Brokers and Axis Underwriting Services.