The transaction will be completed in Q2 2021, and the deal will result in the break up of 300-year insurer RSA

RSA has formally accepted the takeover offer of £7.2bn from Intact Financial Corporation and Tryg. 

It follows an agreement being reached by Intact and the trustees of each of RSA’s UK defined benefit pension schemes.

Under the transaction terms, each RSA shareholder will be entitled to receive 685 pence in cash for each RSA share they hold. 

The transaction will be funded using both debt facilities and equity raises by bidders, but is subject to anti-trust and financial regulatory approvals in various jurisdictions where RSA operates.

The transaction is intended to be affected by a court-sanctioned scheme of arrangement and is estimated to be completed during Q2 2021.

Particulars

The share capital issued and pending is made by a subsidiary of Intact Financial Corporation, acting in consortium with Tryg A/S.

Property and casualty insurance provider Intact Financial Corporation will retain RSA’s Canadian, UK and international operations.

Tryg A/S will retain RSA’s Swedish and Norwegian businesses.

Both Intact and Tryg will co-own RSA’s Danish business.

International law firm Slaughter and May is working closely with RSA’s legal staff, including the firm’s secretarial team, which is headed by Charlotte Heiss, general counsel and company secretary.