RSA Insurance Group - EGM 18 January 2021
The Board called a Court Meeting at 11.00 am and a General meeting at 11.15 am or as soon thereafter as the Court Meeting concludes. The Board proposes to approve a recommended cash offer to be made by Intact for the entire issued and to be issued share capital of RSA and the associated separation of RSA's Scandinavian Business following the completion to Tryg. It is intended that the Acquisition will be effected by way of a court-sanctioned scheme of arrangement.
A consortium of Canadian Intact and Denmark’s Tryg insurers made an irrevocable cash offer of 685p per RSA’s share, which values RSA at £7.2 billion on a fully diluted basis. £4.2 billion will be contributed by Tryg and £3.0 billion by Intact.
While it is sad to see the end of RSA's 300-year history, we recommend that shareholders approve the proposal. RSA currently suffers from the market uncertainties and is a perfect target for takeovers in light of its market undervaluation. We see a real mismatch between the increasing EPS and the decreasing share price. Nevertheless, this friendly takeover offers a good premium to shareholders over the share price before the deal announcement and also before the Covid-19 pandemic.
RSA Insurance Group is an international general insurer focused on selected regional markets. Through its subsidiaries and associates, Co. provides personal and commercial insurance products to its global customer base, principally in the U.K., Ireland, Middle East, Scandinavia and Canada. The principal activity of Co. is to hold investments in its subsidiaries and the receipt and payment of dividends.
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