Canada’s Intact, Danish Tryg in $9.3bn takeover talks with British insurer RSA

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Canada’s Intact, Danish Tryg in $9.3bn takeover talks with British insurer RSA

RSA Insurance Group Plc., the London-based multinational general insurance company primarily focused on UK, Ireland, Canada and Scandinavia, had been in an advanced stage $9.3 billion takeover talk with a consortium led by a Canadian insurer Intact Financial alongside Danish Tryg, the British insurer said late on Thursday.

On top of that, the British insurer which has been up for sale since 2015, said that its management board would be looking to the recommended proposal of 685 pence per RSA share in cash alongside its previously announced interim dividend of 8 pence per share Apart from that, the London-based multinational general insurer operating in more than 140 countries across the globe was also quoted saying late on the day that it had received the buyout proposal on October 2, which had valued its motor, home and commercial insurance business at a premium of 50 per cent in contrast to its closing price of October 1.

Besides, the consortium led by the Canadian insurer Intact and Denmark’s Tryg would have until December 3 to proffer a final offer, added the London-based insurer.

RSA shares’ jump 46% as analysts call the bid “overpriced”

Aside from that, while Jefferies analysts were quoted saying that the proposed buyout price would likely to value RSA “more than fair,” shares’ prices of LSE-listed RSA space-dived as much as 46 per cent to wind down the day at 670 pence a share on Thursday.

In tandem, according to the terms of the proposed buyout deal, Canada’s Intact would take over RSA’s international operation alongside its businesses in Canada and UK, while the Danish insurer Tryg would acquire RSA’s Swedish and Norwegian business.

RSA’s Danish business would be co-owned by Tryg and Intact. Besides, US lender Goldman Sachs, Band of America and Robey Warshaw have been working with RSA over the deal, the London-based insurer said late in the day.