Tryger happy

5 November 2020 By Aimee Donnellan Follow @aimeedonnellan

Five years after a union with Zurich Insurance fell through, the UK insurer has a 7.1 bln pound offer from Canadian and Danish suitors. RSA will grab an all-cash bid that comes with a 50% premium. The buyers’ need for fat synergies will discourage counter-proposals.

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RSA said on Nov. 5 it had received a 7.1 billion pound takeover proposal from a consortium including Canada’s Intact Financial and Danish insurer Tryg regarding a possible offer for the company.

The proposal, which was made on Oct. 2 and may or may not lead to an offer being made for RSA, comprises 685 pence in cash per RSA share, plus payment by RSA of an announced interim dividend of 8 pence per share.

The proposal envisages Intact retaining RSA's Canada and UK & International operations, while Tryg would retain RSA's Sweden and Norway operations, and Intact and Tryg would co-own RSA's Denmark business.

RSA’s board said it had indicated to the consortium it would be minded to recommend the proposal and said it was engaged in discussions with the consortium in relation to the possible offer.

RSA shares closed up 45.7% at 670 pence.

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