RSA Insurance’s Canadian suitor secures finance for takeover

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RSA Insurance Group PLC’s (LON:RSA) Canadian suitor, Intact Financial Corporation said it has arranged all the financing it would need to satisfy its side of the £7.2bn deal.

Although a firm offer has not yet been made, Intact put out a statement in London on Friday to say it has secured underwriting for a US$1.25bn share subscription from CIBC Capital Markets and Barclays Capital Canada.

READ: RSA Insurance receives £7.2bn takeover offer from Canadian and Danish consortium

Alongside this, Intact has agreed a $3.2bn placing with institutional investors.

The subscription and the placing together “provide Intact with all of the equity financing it would require to fund its share of the purchase price for RSA”, it said.

A potential offer by Intact, in a consortium with Danish peer Tryg, is subject to a period of due diligence that is currently underway.

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