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November 17, 2022

AJG renews equity funding programme to support takeovers

US-based insurance brokerage entity Arthur J. Gallagher (AJG) has renewed its equity funding programme for acquisitions.

For brokerage and risk management acquisitions, the company filed a shelf registration statement on Form S-4 to register seven million shares for issuance.

It is on top of the two million shares allocated for issuance under the company’s November 2016 shelf registration statement on Form S-4.

The company also created an at-the-market equity programme to offload up to three million shares.

AJG is planning to utilise the net proceeds of sales under the programme to support future purchases.

It will also use the proceeds for general corporate purposes.

According to the company, the latest actions are in line with its past capital management practices and along with the firm’s existing $1.5bn stock repurchase authorisation enable it to adjust capital structure based on market conditions and acquisition funding requirements.

For the at-the-market equity programme, Morgan Stanley is the sales agent.

AJG stated that “any sales of our common stock under the programme will generally be made through ordinary brokers’ transactions, including on the New York Stock Exchange, and sold at market prices or as otherwise agreed with the sales agent.”

Based in Rolling Meadows, Illinois, AJG offers insurance brokerage, risk management, and consulting services in around 130 countries worldwide.

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