Zurich has tabled a £5.6bn indicative offer for RSA Insurance Group, while the UK Takeover Panel has agreed to give Zurich an extension to formulate its possible deal.
The two insurers disclosed yesterday (24 August) that Zurich had proposed paying 550 pence a share in cash for RSA.
The RSA board said it has indicated it would be willing to “recommend” the possible offer to its shareholders, subject to the “satisfactory resolution” of other offer terms.
The share price for RSA is, at the time of writing, 484.76p, up from yesterday’s opening of 478p. Last night, the share price closed at 495p, one of the only rises on the benchmark blue-chip index amid a sell-off due to China’s woes.
Yesterday, Zurich asked RSA for more time to table a formal offer, as it neared the 5pm deadline today (24 August) to submit an offer or withdraw for six months. The statement confirmed that the UK Takeover Panel has agreed to a deadline extension to 5pm on 22 September to make a possible offer for RSA.
The statement said that by this time Zurich must either announce a “firm intention” to make an offer for RSA or announce that it does not intend to make an offer.
The statement said: “The possible offer is subject to satisfactory completion of due diligence and agreement on other terms. Neither the indication of interest nor this announcement amounts to a firm intention to make an offer and there can be no assurance that any offer will be made.”
Zurich cautioned in a statement: “Neither the indication of interest nor this announcement amounts to a firm intention to make an offer and there can be no assurance that any offer will be made.”
donia.o’loughlin@ft.com
