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February 24, 2015 at 05:01 AM
(Bloomberg) — Discovery Ltd., owner of South Africa’s largest medical-insurance administrator, said it will sell shares to fund expansion in the U.K. and its home market.
Discovery, based in Johannesburg, will raise as much as 5 billion rand ($429 million) through the sale of shares at 90 rand apiece to support its U.K. business and pursue opportunities in South Africa, it said in a statement Tuesday.
“The board has resolved to raise capital to pursue distinct opportunities for additional growth,” Discovery said. “The capital of 4 billion rand to 5 billion rand will be raised by way of an underwritten renounceable rights issue, the terms of which will be finalized by March 10.”
Fiscal first-half net income climbed to 3.5 billion rand in the six months to December, from 1.71 billion rand a year earlier, with profit doubling on new business and the acquisition of a stake in a Prudential P.L.C. unit, the company also said. Normalized diluted earnings per share excluding one- time items rose 17 percent to 3.40 rand and the company declared an increased interim dividend of 85.5 cents.
