Resolution wants £2bn rights issue even if Axa deal collapses

Resolution says it will go ahead with a £2bn rights issue later this month even if the Axa deal falls through as the proceeds can be used to fund other acquisitions.

Resolution will hold a general meeting to approve the £2.75bn take-over of Axa’s UK life business and its rights issue on 20 July, with the offer period due to start the day after. However, the Clive Cowdery-led consolidation vehicle says the rights issue is not conditional upon completion of the Axa acquisition. Should the deal not go ahead, proceeds from the issue will be invested on a short-term basis whilst other acquisition opportunities are considered. Resolution will pay Axa £2.224bn in cash on conclusion of the deal, a further £26m in cash in an agreed post-sale reorganisat...