UK-based insurer RSA has agreed to a £7.2 billion takeover bid by Canada’s Intact Financial and Denmark’s Tryg, media reports said. A cash offer has been made to the British insurer, and is one of the biggest takeover bid made in Europe this year.
RSA revealed that the company’s directors backed the Intact-Tryg bid unanimously and recommended shareholders vote in favour of the consortium’s offer.
Under the terms of the deal, Denmark’s Tryg will bring in £4.2 billion for the deal which will see them takeover RSA’s business in Sweden and Norway. On the other hand, Canada’s Intact will pay the other £3 billion and will takeover RSA’s Canadian, UK and Ireland, and international operations. Both parties will continue to co-own RSA’s unit in Denmark. RSA shareholders will also receive an interim dividend of 8p per share, worth about £82 million in total.
With regard to the cash offer, Martin Scicluna, the chairman of RSA told the media, “The board of RSA is pleased to be recommending Intact and Tryg’s cash offer for the company, which delivers attractive, certain value for shareholders. RSA has provided peace of mind to individuals and protected businesses from risk for more than 300 years. However, I am confident that the values of our business, and not least our dedication to serving customers well, will be sustained as part of Intact and Tryg.”
RSA, which is more than a 300 years old year company, is well known for its ‘More Than’ brand. RSA provides home, motor and commercial insurance across its markets over the globe.