Asset manager Amundi has launched a cash call to finance its €3.5 billion acquisition of Pioneer Global Asset Management from Italian bank UniCredit.
The Paris-based firm agreed to buy Pioneer in December in a deal that would make Amundi the world’s eighth largest asset manager with total assets under management of €1,276 billion.
Amundi, which is three-quarters owned by the French bank Credit Agricole, is asking shareholders for €1.4 billion of new capital and will sell new shares for €42.50 at a discount of 20.6% on Monday’s closing price of €53.50.
Once the rights issue has been completed Credit Agricole will hold around 70% of Amundi’s share capital.
Amundi will use €1.5 billion of its own cash to complete the deal.
Shareholders will be offered one new share for every five existing shares.
Pioneer has around €249 billion of assets under management and the acquisition will add around 25% to Amundi’s total assets under management.
The subscription period for the rights issue will run from March 17 until the end month.
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