Post by
beancounter11 on Nov 12, 2020 8:17am
Intact Financial Corporation Announces Agreement with Corner
This should help stabilize the stock.
Intact Financial Corporation Announces Agreement with Cornerstone Investors to Finance a Portion of the Purchase Price of the Possible Offer for RSA Insurance Group PLC (“RSA”) November 12, 2020 – Further to the announcement on November 5, 2020 relating to the possible offer for RSA by Intact Financial Corporation (TSX: IFC) (“Intact” or the “Company”) and Tryg A/S (“Tryg”) (together the “Consortium”), Intact announced today that it has entered into subscription agreements with subsidiaries of each of Caisse de dpt et placement du Qubec (“CDPQ”), Canada Pension Plan Investment Board (“CPP Investments”) and Ontario Teachers’ Pension Plan Board (“Ontario Teachers’”) for the aggregate issuance of 23.8 million subscription receipts at a price of $134.50 per subscription receipt for gross proceeds of $3.2 billion. CDPQ, CPP Investments, and Ontario Teachers’ are committing $1.5 billion, $1.2 billion, and $0.5 billion, respectively. Completion of the offering is conditional upon the Consortium announcing a firm offer for RSA. Additional information on the proposed transaction is available at Intact’s website at https://www.intactfc.com/English/investors/. Each subscription receipt will entitle the holder to receive one common share of Intact as well as a commitment fee upon closing of the acquisition of RSA. The completion of the offering is subject to approval of the Toronto Stock Exchange and other customary closing conditions. The subscription receipts and the common shares of Intact have not been, and will not be, registered under the U.S. Securities Act, or the securities laws of any state of the United States and may not be offered, sold or delivered, directly or indirectly, within the United States, except in certain transactions exempt from, or not subject to, the registration requirements of the U.S. Securities Act and applicable state securities laws. This press release does not constitute an offer to sell or a solicitation of an offer to buy any of these subscription receipts within the United States.
Full release:
https://s1.q4cdn.com/321139868/files/doc_downloads/2020/11/12/Announcement-Agreement-with-Cornerstone-Investors-to-Finance-a-Portion-of-the-Purchase-Price-of-the-Possible-Offer-for-RSA-Insurance-Group-PLC-2.pdf
Comment by
tbnorthstar on Nov 12, 2020 8:18pm
Terms were about what I was thinking. We should be okay now...has caught a bid already. Anything below the 134 mark is a buy for the little guys....and I am definitely one of those.
Comment by
tbnorthstar on Nov 13, 2020 9:44pm
Ex dividend date coming up soon. Stock will trade well now that the price has been set. Didn't expect that kind of movement today but will gladly take it. IFC headed to 170 within 12 months...and a 7-9% dividend raise coming up tpo boot (early 2021 announcement)..
Comment by
tbnorthstar on Nov 18, 2020 12:20pm
Deal is finalized subject to the rubber stamp process (regulators, shareholders) and will be all tied up by the end of Q2 2021. Highly accretive. Intact is still one to own and add on dips.
Comment by
tbnorthstar on Dec 03, 2020 6:58pm
IFC has started its stairstep climb higher. My expectation is that shares will head towards the 170 dollar mark within a year. Naturally, if the market says the party is over, down goes IFC. That will not preclude another dividend raise in Q1 2021 however, look for a 7-9% increase.
Comment by
eXclusif on Dec 04, 2020 1:25pm
Stock is about to hit all time high. Party is about to start not over. IFC seems to be in good postion and once the RSA deal closes i'm sure $200 will be in reach.
Comment by
tbnorthstar on Dec 04, 2020 8:09pm
Possibly, my chartist buddy says she is wide open to run higher.