RSA takeover conclusion announcement

RSA Group

Date:

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RECOMMENDED CASH ACQUISITION
of
RSA INSURANCE GROUP PLC
by
REGENT BIDCO LIMITED

 (a wholly-owned subsidiary of Intact Financial Corporation)

to be effected by means of a Scheme of Arrangement under

Part 26 of the Companies Act 2006

 SCHEME OF ARRANGEMENT BECOMES EFFECTIVE

On 18 November 2020, the boards of directors of RSA Insurance Group plc ("RSA") (as it was prior to its re-registration as a private limited company), Regent Bidco Limited ("Bidco") (a wholly-owned subsidiary of Intact Financial Corporation ("Intact")) and Tryg A/S ("Tryg") announced that they had agreed the terms of a recommended cash offer pursuant to which Bidco will acquire the entire issued and to be issued share capital of RSA (the "Acquisition"), to be effected by means of a Court-sanctioned scheme of arrangement under Part 26 of the Companies Act 2006 (the “Scheme”). The circular in relation to the Scheme (the “Scheme Document”) was published on 16 December 2020.  

On 25 May 2021, RSA announced that the High Court of Justice in England and Wales had sanctioned the Scheme at the Scheme Court Hearing held on 25 May 2021 and on 26 May 2021, RSA announced that its re-registration as a private limited company had become effective.

RSA, Bidco and Tryg are pleased to announce that, following delivery of the Court Order to the Registrar of Companies today, the Scheme has now become effective in accordance with its terms and, pursuant to the Scheme, the entire issued and to be issued share capital of RSA is now owned by Bidco.

A Scheme Shareholder on the register of members of RSA at the Scheme Record Time, being 6:30 p.m. on 28 May 2021, will be entitled to receive 685 pence in cash for each Scheme Share held. Settlement of the consideration to which any Scheme Shareholder is entitled will be effected by way of the despatch of cheques or the crediting of CREST accounts (for Scheme Shareholders holding Scheme Shares in certificated form and in uncertificated form respectively) (or by any other method approved by the Panel) as soon as practicable and in any event not later than 14 days after the Effective Date, as set out in the Scheme Document.

Applications have been made to the Financial Conduct Authority and the London Stock Exchange in relation to the de-listing of RSA Shares from the premium listing segment of the Official List and the cancellation of the admission to trading of RSA Shares on the London Stock Exchange’s main market for listed securities, which is expected to take place by 8:00 a.m. on 2 June 2021.

As the Scheme has now become effective, RSA duly announces that, as of today’s date, Sally Bridgeland, Charles Brindamour, Claude Dussault, Mark Hodges, Robert Leary, and Andy Parsons have been appointed to the RSA Board and Sonia Baxendale, Kath Cates, Enrico Cucchiani, Stephen Hester, Martin Scicluna and Martin Strobel have tendered their resignations and have stepped down from the RSA Board. Scott Egan will remain on the RSA Board going forwards. Charlotte Heiss has also tendered her resignation as General Counsel and Company Secretary.

The announcement made by Bidco, Tryg and RSA in connection with the Acquisition on 18 November 2020 pursuant to Rule 2.7 of the City Code on Takeovers and Mergers (the "Code") contained the following post-offer intention statement for the purpose of Rule 19.6 of the Code:  "The Chief Executive Officer, Chief Financial Officer and non-executive directors of RSA are expected to resign as RSA Directors on Completion." As an update to that statement made in relation to the above statement of intent, it has since been agreed that Charlotte Jones (the Chief Financial Officer of RSA) and each of Alastair Barbour and Clare Bousfield (both non-executive directors on the RSA Board) will remain on the RSA Board going forwards. This disclosure is required under Rule 19.6(b) of the Code.

Martin Scicluna, RSA Group Chairman, commented:

“It has been a very great privilege to Chair RSA for the past eight years and oversee the development and implementation of a fundamental change in strategy which has resulted in a much more focussed, stronger and more profitable Company.  I am very grateful to our CEO, Stephen Hester, for his outstanding leadership and drive in the transformation of our Company. My thanks to our Executive Committee members and the senior Leadership team who together with our employees have delivered for our customers, our shareholders and other key stakeholders. Finally, thank you to all my Board colleagues for their significant contribution during my tenure as Chairman.
 RSA has provided peace of mind to individuals and protected businesses from risk for more than 300 years. That history has seen significant consolidation in the insurance industry, and we believe that RSA’s businesses, customers, employees and other stakeholders will prosper under the stewardship of Intact and Tryg, two great businesses with long histories and reputations. The acquisition of RSA has delivered attractive, certain value for our shareholders and I wish Intact and Tryg every success for the future.”

 

Full details of the Acquisition are set out in the Scheme Document. Capitalised terms used but not defined in this announcement (the “Announcement”) have the meanings given to them in the Scheme Document. All references to times in this Announcement are to London times unless otherwise stated.

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