Deal: nib Holdings Limited (nib) is about to acquire 100 per cent of Grand United Corporate Health Limited from Australian Unity Limited and complete a capital raising.

Value: $155.5 million

Area: M&A, finance

Key players: The Ashurst legal team was led by partner Phil Breden, with assistance from partners Anton Harris, Tim Brookes, Peter McCullough, Jennie Mansfield, Anita Cade, Diane Skapinker and Bill Reid.

Deal significance: This transaction will see nib acquire 100 per cent of the shares of Grand United Corporate Health Limited (GU Health) from Australian Unity Limited (AU) for $155.5 million.

According to a statement from Ashurst, completion of the transaction is expected to occur in the final quarter of 2017, subject to satisfaction of certain conditions precedent.

“GU Health is Australia’s only established specialist corporate group health insurer, servicing over 34,000 policyholders across more than 260 corporate clients. The business has operated as a wholly owned subsidiary of AU since 2005,” the statement said.

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“nib has also successfully completed a fully underwritten $60 million institutional placement in connection with the transaction and also intends to offer a non-underwritten $15 million Share Purchase Plan and utilise a new debt facility for the balance. Shares to be issued under the placement are expected to be settled on 25 September 2017, with the issue and quotation of the new securities expected to occur on 26 September 2017.

“Ashurst advised nib on all aspects of the transaction and the capital raising.”