RSA Insurance Group plc has launched a rights issue to raise £773 million in proceeds.
The rights issue is a fully underwritten three for eight rights issue of 1,380,976,863 ordinary shares of 27.5 pence each in the capital of the company at a price of 56 pence per ordinary share.
The board of directors of the company said that it believed that the company needed to conduct the rights issue to enable the RSA group to restore its capital position and keep ahead of anticipated industry capital trends, and that it would allow the business to carry out its action and improvement plans without undue risk of sub-optimal decisions forced by capital shortage or instability. The company said that the net proceeds of the rights issue would be held as cash or low risk investments to improve the RSA group's capital position and surplus over its capital requirements.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].