Health insurer nib has launched a capital raising to help fund the $155.5 million acquisition of corporate health insurance provider GU Health.
Shares in nib were placed in a trading halt on Wednesday ahead of the launch of a $60 million institutional placement that will be used to fund the deal, along with a $15 million share purchase plan
A new debt facility will fund the remainder.
Australian Unity said it expects to complete the sale of GU Health to nib before the end of the calendar year.
nib managing director Mark Fitzgibbon said GU Health has carved out a niche market.
"The acquisition ... adds materially to both our Australian residents and international health insurance businesses and hopefully, will help grow our nascent outbound business," Mr Fitzgibbon said.
"We have a strong view at nib about how globalisation increasingly demands that health insurers are able to seamlessly offer customers global cover."
GU Health is Australia's only established specialist corporate group health insurer, with about 34,000 policyholders across more than 260 corporate clients.
It generated premium revenue of $193.5 million in the 12 months to June 30, and nib said the acquisition is expected to be immediately accretive on an earnings per share basis.
