RSA Insurance Group PLC - London-headquartered general insurer - Intact Financial Corp completes private placement of 23.8 million subscription shares at CAD134.50 each for a total of CAD3.2 billion. Caisse de depot et placement du Quebec, Canada Pension Plan Investment Board and Ontario Teachers' Pension Plan Board committed CAD1.5 billion, CAD1.2 billion, and CAD500 million respectively. Intact will use proceeds from the placement to fund part of its acquisition costs of RSA Insurance.
Earlier in November, FTSE 100-listed RSA said it reached an agreement to be sold in a deal with a two-headed consortium which values the insurer at GBP7.2 billion. The deal will see the insurer divided between Canada's Intact Financial Corp and Scandinavian insurer Tryg AS. Tryg's contribution will be GBP4.2 billion with Intact's portion of the deal amounting to GBP3.0 billion. Under the deal, RSA shareholders will receive 685 pence in cash for each share. In addition, RSA shareholders will be entitled to receive the insurer's interim dividend of 8p.
Current stock price: 675.00
Year-to-date change: up 19%
By Ife Taiwo; ifetaiwo@alliancenews.com
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