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RSA agrees £7.2bn takeover by Intact and Tryg
18th Nov 2020 07:17
(Sharecast News) - RSA Insurance has agreed to be bought for £7.2bn by a consortium comprising Intact Corp of Canada and Denmarks' Tryg A/S.
The consortium will pay 685p in cash for each RSA share and the FTSE 100 company's shareholders will receive the 8p-a-share dividend payable in December.
The price including the dividend is 51% higher than the insurer's closing price on 4 November - the day before RSA revealed it had received an approach from the consortium. The terms of the deal are in line with those published on 4 November.
Tryg will pay £4.2bn to buy RSA's Swedish and Norwegian businesses. Intact will pay £3bn and will acquire the company's Canadian, UK and international operations. The companies will each own half of RSA's Danish business.
RSA, formerly known as Royal & Sun Alliance, owns the More Than insurance brand. The 314-year-old company has insured names such as the explorer James Cook and Charles Darwin, who developed the theory of evolution. RSA has been the subject of takeover speculation on and off for several years.
Martin Scicluna, RSA's chairman, said: "The board of RSA is pleased to be recommending Intact and Tryg's cash offer for the company, which delivers attractive, certain value for our shareholders. The offer reflects the strength and performance of RSA during a challenging period for our industry, representing a significant premium in cash.
RSA has been the subject of takeover speculation on and off for several years. Chief Executive Stephen Hester is reported to be in line for a £16m payday when the transaction completes.
The consortium will pay 685p in cash for each RSA share and the FTSE 100 company's shareholders will receive the 8p-a-share dividend payable in December.
The price including the dividend is 51% higher than the insurer's closing price on 4 November - the day before RSA revealed it had received an approach from the consortium. The terms of the deal are in line with those published on 4 November.
Tryg will pay £4.2bn to buy RSA's Swedish and Norwegian businesses. Intact will pay £3bn and will acquire the company's Canadian, UK and international operations. The companies will each own half of RSA's Danish business.
RSA, formerly known as Royal & Sun Alliance, owns the More Than insurance brand. The 314-year-old company has insured names such as the explorer James Cook and Charles Darwin, who developed the theory of evolution. RSA has been the subject of takeover speculation on and off for several years.
Martin Scicluna, RSA's chairman, said: "The board of RSA is pleased to be recommending Intact and Tryg's cash offer for the company, which delivers attractive, certain value for our shareholders. The offer reflects the strength and performance of RSA during a challenging period for our industry, representing a significant premium in cash.
RSA has been the subject of takeover speculation on and off for several years. Chief Executive Stephen Hester is reported to be in line for a £16m payday when the transaction completes.