Pearl moves towards its UK flotation
PEARL, the recently refinanced insurance group, yesterday said it was headed for a stock market flotation in 2010 as it reported cash generation ahead of targets.
Pearl was so financially stretched earlier this year following its acquisition of Resolution life funds that the Financial Services Authority encouraged it to seek new equity funding.
Yesterday, the group, which received an equity injection of £500m from an offshore vehicle Liberty earlier this year, said its excess group capital had increased to £1.2bn – up £88m – primarily as a result of an improvement in investment markets.
Group chief executive Jonathan Moss said a secondary listing of the group’s shares in London was currently underway.
He said: “We continue to work towards a primary listing in London during the course of 2010.”
Moss added: ”We are pleased that the first set of results for the period since the completion of the Pearl acquisition demonstrates the underlying strength of our operating businesses and confirms both the group’s cash generative operating model and its capital strength.”
Pearl said it was actively in discussion with holders of £500m of its tier one bonds over a resolution to a dispute. “We will update the market on developments in due course,” the group said in its statement yesterday.
City PM has reported that there have been discussions between the company and the bondholders at which an offer of between 40-65p has tentatively been made to investors to buy them out of their investment.
FAST FACTS COMPANY
&9679; Ron Sandler, the chairman of Northern Rock, recently became chairman of the Pearl in order to lead it towards a stock market flotation
&9679; In September Pearl Group (formerly Liberty Acquisition Holdings) became the new owner