Aegon share placing raises £2.3bn

DUTCH insurer Aegon has unveiled details of a complicated capital restructuring. Aegon's biggest shareholder, the Aegon Association, has placed 350m shares at e10 each after an accelerated bookbuilding-process over the weekend, bringing in gross proceeds of about e3.5bn (£2.3bn).

About e1.8bn will be used to reduce the association's bank debt while the rest will improve Aegon's capital base by increasing the paid-up capital on the preference shares held by the association.

The shares, which were priced last night, reflected a slight discount to the closing price. Aegon, Holland's second biggest insurer, said the offer had been oversubscribed and some 600 institutions worldwide took part.