Barclays 2010 Annual Report Download - page 23

Resolution acquires
AXA’s UK Life business
Barclays Capital played multiple roles across
all aspects of Resolution’s £2.75bn acquisition
of the AXA UK Life Business last June.
The success of the deal, and strength of
relationships, led to the firm being appointed
Joint Corporate Broker to Resolution in
November – the third FTSE client and seventh
overall Corporate Broking win last year.
In order to fund the cash component of the
acquisition, Resolution announced a fully
underwritten rights issue of approximately
£2bn, and agreed a fully underwritten bridge
facility of £400m.
Financing and executing the deal saw
Barclays Capital hold multiple roles, including
Joint Underwriter, Joint Bookrunner and Joint
Corporate Broker on the rights issue, Joint
Lead Arranger on the bridge facility and Joint
Financial Adviser to Resolution on both the
rights issue and the acquisition. The bridge
facility was also jointly underwritten by
Barclays Capital.
In the firm’s first lead role in a significant
equity capital raising in Europe, and its first
advisory role for Resolution, Barclays Capital
demonstrated the strength of teamwork
across the firm in delivering seamless
capital markets, acquisition financing
and advisory capabilities.
Established in 1983 Mayfly is a family-run
business based in Derbyshire which
manufactures containers used for the deep-sea
off-shore oil and gas industries. Barclays
Corporate has banked the business since 1985.
In 2009, Mayfly identified an opportunity
to expand into overseas markets, focusing
primarily on China and Brazil. Barclays
Corporate was able to assist the company with
their expansion strategy by providing foreign
exchange expertise, information on rates, and
risk management solutions to help protect the
business from currency fluctuations.
David Rudge, Finance Director, said: “When
we took the decision to expand into overseas
markets, Barclays Corporate was able to assist
us with our foreign exchange requirements.
Our joint venture established in Brazil is proving
successful and we continue to expand our
operations in the export markets.”
Mayfly Containers expands into overseas markets
What is corporate and investment banking?
Corporate and Investment Banking is
about helping corporate, government and
institutional clients to finance and grow their
operations, manage their risks and invest
their capital.
Capital raising and financing – We lend money,
and enable companies, banks, cities and
countries to raise equity capital and issue debt
in the capital markets; to provide cash flow
and enable investment in the future. The right
type of lending is different for every client: from
overdraft facilities and asset-based finance, to
rights issues and syndicated loans.
Providing opportunities to generate returns –
We support clients, like pension managers
and investment funds, in making decisions
on where to make their investments and
in executing those investments. With our
support, they can achieve the returns they
need to meet their obligations and satisfy
their customers.
Risk management – We can help clients
manage many of the risks they face, from
foreign exchange and interest rate risk, to the
varying price of commodities. This reduces
uncertainty and allows clients to focus on
their core operations.
Strategic and financial advice – We advise
clients on how to manage and expand their
businesses. That might be through a merger
or an acquisition, or it might be through the
best way to manage their balance sheet,
capital or cash flow.
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Barclays PLC Annual Report 2010 www.barclays.com/annualreport10 21
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