World News – CA – RSA shares soar on £ 7bn buyout approach

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Shares of insurer FTSE 100 surged after announcement of approach by Canadian and Scandinavian insurers

RSA, one of Britain’s oldest insurers, could become foreign-owned after revealing it had received a £ 7 billion takeover bid from a transatlantic consortium

The personal and commercial insurer said it had received a proposal for a potential 685 pence cash offer and that its board of directors was willing to recommend the proposal, pushing its share price up 458 coins

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FTSE 100 company said it was approached by Intact Financial Corporation, a Canadian property and casualty insurer, and Tryg, a Danish insurer

RSA, which underwrites home and pet insurance from John Lewis, Tesco and Argos, dates back more than three centuries to the original Sun Insurance company

Sun was created in 1706 by entrepreneur Charles Povey to protect livelihoods after the Great Fire of London

The consortium made its move on October 2 but did not file a formal offer Shares jumped to 670p after trading just above 450p on Thursday afternoon

The proposed cash offer would give RSA shareholders 685 pence per share plus an interim dividend of 8 pence per share previously announced

There is no certainty that the consortium will make a formal offer and any offer would be subject to conditions including a period of due diligence, RSA said in confirming talks following a Bloomberg report

The announcement raised the prospect that the group could be split into Intact, which has a market value of £ 122bn, intends to retain RSA’s Candian division and its £ 6 8 billion UK and international unit Tryg, listed in Copenhagen, would take over Swedish and Norwegian operations

The couple are said to jointly own the Danish company RSA, which is being restructured by the former CFO of Tryg

Jefferies analyst Philip Kett said 685 pence bid « would be more than fair value for RSA » Rival insurer Zurich halted a £ 5bn offer for the company in 2015

The approach was revealed just hours after RSA revealed that a drop in complaints from customers staying at home during the pandemic helped offset lower sales in the third quarter

Group business operating profit increased in first nine months of year, driven by strong underwriting, company said

The company sold £ 4.7bn of insurance in the first nine months of the year, 3% less than a year ago He blamed the fall on Covid-19

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R S A, Intact Financial Corporation, Tryg, Technical Profit

World News – CA – RSA shares soar with £ 7bn buyout approach



SOURCE: https://www.w24news.com

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