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Capita in pounds 27m insurance move

Saturday 27 March 1999 00:02 GMT
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CAPITA GROUP is to invest pounds 27m in the UK's largest insurance industry outsourcing company, Eastgate, it said yesterday. Capita, one of the UK's leading outsourcing groups, will spend pounds 20.5m buying a 20.5 per cent stake of Eastgate and spend another pounds 6.5m in loans to the company.

To fund the deal Capita will raise pounds 46.2m by issuing over 7 million new shares at 6.67p each. The deal marks a first step for Capita into the increasingly lucrative insurance industry.

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