RSA shareholders approve capital reduction

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RSA Insurance Group (now Limited, formerly Plc) has obtained shareholder approval to reduce capital after Monday’s general meeting in London.

Among the special resolutions duly passed was the reduction of the company’s existing share capital from £ 2,069,394,887 to £ 1,269,394,887 by canceling and extinguishing 800 million ordinary shares of £ 1 each. The reduction level is credited to RSA reserves.

In Chairman Mark Hodges’ letter to shareholders ahead of the general meeting, he noted: “As stated in the acquisition plan document, Intact and the company are now planning to undertake a reorganization of the group structure. RSA. The reorganization involves moving the Canadian companies from RSA to sit alongside the Canadian companies of Intact in the group structure and the unwinding of an internal loan memo that was to be created to facilitate the sale of the Scandinavian operations of RSA to Tryg, which took place upon completion of the acquisition.

“To do this, the company must increase its distributable reserves and the company proposes to carry out a capital reduction to achieve this. The capital reduction requires the approval of the shareholders and for this reason, the company convenes a general meeting.

Read more: RSA finalizes sale – big names are leaving

The date of entry into force of the capital reduction now approved is scheduled for June 23 or around that date.

During this time, Hodges also offered insurance to shareholders of RSA preference.

“I would like to reassure the shareholders preferably of the company that the proposed capital reduction will not affect any of the rights attached to your preferred shares, nor that there will be any change in the number or the nominal value of the shares. preferably in circulation, ”says the new president. “Neither the Company nor Intact currently intends to make any changes to the terms and conditions of the Preferred Shares or to take any action with respect to the Preferred Shares outstanding.

“The company is now part of the larger Intact group, which is listed on the Canadian Stock Exchange with a market capitalization of over £ 20 billion. The capital reduction will therefore not affect the company’s ability to meet its financial commitments.


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