LONDON (Reuters) - Britain's RSA Insurance RSA.L said on Wednesday it had received a cash offer worth 7.2 billion pounds ($9.55 billion)from Canadian insurer Intact Financial IFC.TO and Danish insurer Tryg TRYG.CO.
RSA said its directors had unanimously backed the bid and recommended that shareholders vote in favour of the consortium’s offer, which the insurer had first flagged earlier this month.
Best known in Britain for its More Than brand, RSA provides home, motor and commercial insurance and has large operations in Canada, Ireland and Scandinavia.
If successful, the suitors would carve up RSA with Intact keeping RSA’s Canada, UK and international operations, while Tryg would take control of RSA’s Sweden and Norway businesses.
Tryg would pay 4.2 billion pounds while Intact would contribute 3 billion pounds, with the overall offer representing a 51% premium to RSA’s closing share price of 460 pence on November 4.
RSA.L, Tryg, ” Morten Hübbe
Britain, Canada, Ireland, Scandinavia, Sweden, Norway, Danish