(Alliance News) -Â Intact Financial Corp on Thursday said it has reached agreements with investors to finance a portion of its offer for RSA Insurance Group PLC.
London-headquartered general insurer RSA on Thursday confirmed Canadian insurer Intact Financial and Danish insurer Tryg AS had made a proposal to buy the FTSE 100-listed firm and divide it up between them.
The board of RSA on Friday backed the two-headed consortium's GBP7.2 billion takeover proposal. It said Intact would pay USD3.0 billion and take RSA's Canada and UK & International business, while Tryg would pay USD4.2 billion and take the Sweden and Norway operations. The pair would co-own RSA's business in Denmark.
Intact on Thursday said it has has entered into subscription agreements with subsidiaries of each of Caisse de depot et placement du Quebec, Canada Pension Plan Investment Board and Ontario Teachers' Pension Plan Board for a total issue of 23.8 million subscription receipts at a price of USD134.50 per subscription receipt, raising gross proceeds of USD3.2 billion.
CDPQ, CPP Investments and Ontario Teachers' are committing USD1.5 billion, USD1.2 billion, and USD500 million, respectively.
Completion of the offering is conditional upon the consortium announcing a firm offer for RSA, Intact noted.
RSA shares were down 0.2% at 653.00 pence in London on Thursday.
By Lucy Heming;Â lucyheming@alliancenews.com
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