CBL buys Australian business after yesterday's NZX success
Its acquisition of Australia's largest surety bond insurer has gone through.
CBL Corporation [NZX: CBL], which listed on the stock exchange yesterday, has confirmed its acquisition of Australia’s largest surety bond insurer has gone through.
The company announced this afternoon the $46 million acquisition of Assetinsure is final, after it raised $125 million selling shares to new investors.
Of this, $32.7 million went towards acquiring Assetinsure. The deal received Australian Prudential Regulation Authority approval in August.
The acquisition is a strategic step in CBL’s plans to build its business in Australia.
“Our business is strongly weighted to Europe, which accounts for more than 70% of the business written by the company. We expect the purchase of Assetinsure will go some way towards broadening our operations,” says managing director Peter Harris.
Auckland-based CBL, which operates in 25 countries, also took a 35% shareholding in Mexican insurer Afianzadora Fiducia in August.
After assimilating Assetinsure and developing the Mexican and Euopean businesses, CBL will look to move into South East Asia and India in the next couple of years, Mr Harris says.
CBL’s net profit is expected to rise from $19.4 million in the 2014 calendar year to $29.2 million in 2015 (including the contribution from the Assetinsure acquisition) and $40.4 million in 2016.
Yesterday, the company became the second to float on the NZX main board this year, opening on the NZX at $1.74 and on the ASX at $A1.62, a premium to the price set at bookbuild.
CBL’s shares have risen to $1.78 today.
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Wed, 14 Oct 2015
Wed, 14 Oct 2015
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CBL buys Australian business after yesterday's NZX success
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