The Canadian business issued a statement in London today with the details, adding that it has ‘all of the equity financing’ it needs
Canadian insurer Intact Financial Group has confirmed that it has arranged all the financing it needs to deliver its side of the £7.2bn bid for RSA, reported Proactive.
On 5 November, it was confirmed that insurer RSA is considering a £7.2bn consortium bid for the business from Intact and Danish insurer Tryg.
If successful, Intact would take over RSA’s Canadian, UK and international business for £3bn, while Tryg would pay £4.2bn to assume control of the insurer’s Sweden and Norway operations. Both Intact and Tryg would co-own RSA’s Denmark business.
Although the consortium has yet to make a firm offer, Intact announced today that it has secured underwriting for a $1.25bn share subscription from CIBC Capital Markets and Barclays Capital Canada.
Furthermore, it has agreed a $3.2bn placing with institutional investors.
These two components “provide Intact with all of the equity financing it would require to fund its share of the purchase price for RSA”, it said.