Canadian property and casualty insurer Intact has taken a step closer to securing its joint-acquisition of RSA with the successful completion of a previously-announced $3.2 billion capital raise.
The $3.2 billion was raised via a private placement of 23.8 million subscription receipts to Caisse de dépôt et placement du Québec, Canada Pension Plan Investment Board and Ontario Teachers’ Pension Plan Board at an individual price of $134.50.
Each subscription receipt will entitle the holder to receive one common share of Intact as well as a dividend equivalent payment upon closing of the acquisition.
RSA’s acquisition is set to represent a $9.5 billion deal, of which Scandinavian insurer Tryg will contribute $5.5 billion.
It’s understood that Intact will retain RSA’s Canada and UK & International businesses and obligations, and Tryg will hold on to its Sweden and Norway operations, with the pair co-owning RSA’s Denmark business.
The closing of the acquisition is expected to occur in the second quarter of 2021.
