Nib hits up investors

HEALTH insurer Nib is tapping investors to help fund a $155.5 million buyout of corporate health insurance provider GU Health.

Shares in Nib were put in a trading halt yesterday as the company announced plans to raise $60 million by selling new shares to institutional investors, and another $15 million through a share purchase plan open to retail shareholders. The cash will be used to help pay for the deal, with a new debt facility to make up the difference.

Australian Unity said it expected to complete the sale of GU Health to Nib before the end of the year.

GU Health is Australia’s only established specialist corporate group health insurer.