In­tact Fi­nan­cial Corp. to buy U.S. spe­cialty in­surer for US$1.7 bil­lion

Cape Breton Post - - Business -

TORONTO _ In­tact Fi­nan­cial Cor­po­ra­tion (TSX:IFC) says it has reached a US$1.7-bil­lion deal to buy OneBea­con In­surance Group, Ltd., a U.S. spe­cialty in­surer.

Un­der the terms of the all­cash deal, OneBea­con share­hold­ers will re­ceive US$18.10 cash per com­mon share, a 14 per cent pre­mium based on OneBea­con’s clos­ing stock price on the NYSE of US$15.89 as of May 1, and a 15 per cent pre­mium to the vol­ume weighted av­er­age price over the last 30 days.

In ad­di­tion, OneBea­con debt of ap­prox­i­mately US$275 mil­lion will re­main out­stand­ing. Pend­ing ap­proval by OneBea­con’s share­hold­ers, Toronto-based In­tact says the ac­qui­si­tion will make it a North Amer­i­can leader in spe­cialty in­surance with more than C$2 bil­lion of an­nual pre­mi­ums.

In­tact says the deal will bol­ster its Cana­dian busi­ness with new prod­ucts and cross­bor­der ca­pa­bil­i­ties, and bet­ter po­si­tions In­tact to com­pete with in­ter­na­tional in­sur­ers.

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