Intact Financial : to Raise $3.2 Billion in Share Subscription as It Mulls Bid for RSA Insurance

By Anthony O. Goriainoff

Intact Financial Corp. said Thursday that it has agreed to a $3.2 billion share subscription with some investors as it mulls a takeover offer for FTSE 100 listed RSA Insurance Group PLC.

The Canadian insurance company said it entered into subscription agreements with subsidiaries of each of Caisse de Depot et Placement du Quebec, Canada Pension Plan Investment Board and Ontario Teachers' Pension Plan Board for the aggregate issuance of 23.8 million subscription receipts at a price of $134.50 per subscription receipt.

Intact Financial said CDPQ, CPP Investments, and Ontario Teachers' are committing $1.5 billion, $1.2 billion, and $500 million, respectively.

This would finance a portion of the purchase price of the possible offer for the U.K. insurer, the company said.

Intact Financial said completion of the offering is conditional upon it and Scandinavian insurance company Tryg AS announcing a firm offer for RSA.

Write to Anthony O. Goriainoff at [e-mail]

(END) Dow Jones Newswires

11-12-20 0748ET