British firm RSA now up For Sale

London News Update:

RSA is in talks with a consortium of Canadian insurer Intact Financial and Danish insurer Tryg about a possible break-up deal that values the British firm at about 7.2 billion pounds ($9.46 billion).

RSA said its board would be minded to recommend the proposal for 685 pence in cash per RSA share, plus the payment by RSA of its previously announced interim dividend of 8 pence per share.

The offer was made on Oct. 2 and represents a 50% premium to RSA’s closing price on Oct. 1.

If successful, the deal would allow Intact to boost its presence in the competitive Canadian property and casualty (P&C) industry while Tryg would create the largest listed P&C insurer in Scandinavia with total assets of about 99 billion Danish crowns.