(Alliance News) - RSA Insurance Group PLC on Wednesday said it has reached an agreement to be sold in a deal with a two-headed consortium which values the insurer at GBP7.2 billion.
The deal, first announced earlier this month, will see the insurer divided between Canada's Intact Financial Corp and Scandinavian insurer Tryg AS.
Under the deal, RSA shareholders will receive 685 pence in cash for each share, the same amount proposed earlier in November. In addition, RSA shareholders will be entitled to receive the insurer's interim dividend of 8p.
RSA shares were 3.9% higher at 671.70p each in London on Wednesday morning, the best performing blue-chip stock.
The acquisition price represents a premium of 51% to November 4's closing price in London, being the day before the announcement of Intact and Tryg's possible offer.
The deal will see Intact run RSA's Canadian, UK and international operations, while Tryg will take RSA's Swedish and Norwegian businesses. The two will co-own RSA's Danish business.
Tryg's contribution will be GBP4.2 billion with Intact's portion of the deal amounting to GBP3.0 billion.
"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," said RSA Chair Martin Scicluna.
By Eric Cunha; ericcunha@alliancenews.com
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