(RTTNews) - Manulife Financial Corp. (MFC,MFC.TO: News ) said that it will issue $2.50 billion in common equity in a bought deal arranged by Scotia Capital Inc. and RBC Dominion Securities Inc.

Upon closing, Manufacturers Life Insurance Co. will have access to the capital, which is the highest since it became a public company.

A Syndicate of underwriters being led by Scotia Capital and RBC Dominion Securities has agreed to buy $2.5 billion in Manulife common shares at a price of $19.00 in a bought deal public offering.

If the over-allotment option is exercised in full, the total gross proceeds of the offering would be $2.88 billion. The estimated net proceeds from the offering will be about $2.413 billion, after deducting the underwriting fee and before the estimated offering expenses payable by the company.
The public offering is expected to close on or about November 30, subject to satisfaction of customary closing conditions.

The company expects to use the net proceeds from this offering for general corporate purposes, which may include contributions of capital to its insurance and other subsidiaries, potential acquisitions or other growth initiatives.

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by RTT Staff Writer

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