It will use GBP55 million of its own reserves, GBP65 million from an undrawn revolving credit facility and GBP140 million through a rights issue to help fund the purchase.
Chesnara has agreed to buy HSBC Holdings' life insurance business in the UK, creating an entity with a combined GBP18 billion ($31.3 billion) of assets under administration.
The acquisition, valued at GBP260 million, would result in lifetime cash generation in excess of GBP800 million, London-listed Chesnara said in a statement on Thursday.
