RSA Insurance to Sell Latin American Operations for GBP403 Million
September 08 2015 - 2:26AM
Dow Jones News
By Ian Walker
LONDON--RSA Insurance Group PLC (RSA.LN) said Tuesday it has
signed contracts to sell its operations in Latin America to
Suramericana SA, the insurance subsidiary of Grupo de Inversiones
Suramericana (GIVSY), for 403 million pounds ($615.6 million) in
cash.
RSA, which is currently in talks with Zurich Insurance Group AG
(ZURN.VX) over a possible offer for the U.K. firm, said Zurich
Insurance is aware of the sale and that any deal isn't conditional
upon any offer by the Swiss firm.
The deal is expected to complete by the end of 2016, subject to
regulatory clearances.
RSA Latin America had total assets of GBP1.34 billion ($2.05
billion) and net tangible assets of GBP258 million as of Dec. 31.
The transaction is expected to be significantly positive for RSA's
capital ratios on all measures following completion, it said.
RSA said last month it received a revised offer from Zurich
Insurance that values the U.K. firm at around GBP5.63 billion.
Zurich, one of the world's biggest insurers, has offered 550
pence ($8.40) a share for its U.K. peer, an 11% premium to its
closing share price of 495 pence on Aug. 24, the day before the
deal was announced. In addition, accepting RSA shareholders will be
able to keep the interim dividend of 3.5 pence a share announced on
Aug. 6.
RSA said in a brief statement it has indicated to Zurich it
would be willing to recommend an offer at this level to
shareholders and the two are now in talks to discuss a deal.
Separately, Zurich also confirmed it had made the offer at that
price.
The U.K. Takeover Panel has set a deadline for Zurich to either
make an offer or withdraw by 1600 GMT on Sept. 22.
Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
September 08, 2015 02:11 ET (06:11 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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