PARIS (Reuters) - French asset manager Amundi (PA:AMUN) set a price of 42.50 euros for its previously announced 1.4 billion euros (1.2 billion pounds) rights issue to finance its acquisition of Pioneer Investments from Italian bank UniCredit (MI:CRDI).
The rights issue price of 42.50 euros represents a discount of 20.6 percent to Amundi's closing share price of 53.50 euros on March 13. Shareholders would get 1 new share for 5 existing shares as part of the capital increase.
French bank Credit Agricole (PA:CAGR) will subscribe to the rights issue and will hold around 70 percent of Amundi's share capital once the rights issue has been completed.
The subscription period for the rights issue will run from March 17 to 31, Amundi added on Tuesday.
Amundi's planned takeover of Pioneer comes amid signs of consolidation within the asset management industry, as companies look to cut costs and win market share.
Earlier this month, Standard Life (L:SL) announced a takeover of Aberdeen Asset Management (L:ADN), while in 2016 Henderson Group (L:HGGH) agreed to buy U.S. rival Janus (N:JNS).
Amundi has been on an expansion spree following its stock market flotation in 2015, and the company is aiming to win more market share in Europe and Asia.
($1 = 0.9383 euros)