Sun Life Financial Services of Canada Inc. today announced an offering of 10 million common shares at a price of $30 per share, together with an over-allotment option of up to one million common shares.

The $300 million proceeds from the transaction will be used as a portion of the financing for the acquisition of Keyport Life Insurance Co. and Independent Financial Marketing Group, Inc. The sale of the shares is expected to close on October 4.

“This common equity financing is another step in completing the Keyport and IFMG acquisition, which we expect to close at the end of October,” said Donald Stewart, chairman and CEO. “The size of this offering was reduced from $500 to $300 million reflecting the volatile equity markets which have characterized the period since the tragic events of September 11.”

Keyport is a Boston-based speciality insurance company providing a diversified line of fixed, indexed and variable annuity products in the United States. As at June 30, Keyport had US$19 billion in assets under management.

IFMG is a leading third-party marketer of insurance and investment products to retail customers through banks in the U.S. These acquisitions will complement both Sun Life Financial’s product array and distribution capabilities.

The offering is being sold through a syndicate of underwriters jointly led by Morgan Stanley & Co. Incorporated and RBC Dominion Securities Inc.