- Investors offered a premium to give up future income
- 2026 deadline an opportunity to play hard ball
On the face of it, there’s plenty to like about the 122p tender offer for RSA Insurance Group’s (RSAB) preference shares. Given they closed at 108.25p on 11 June the day before the announcement, shareholders will potentially pocket a 12.7 per cent capital gain plus any dividends accrued.
Alongside the offer, which has a deadline of 19 June for institutions and 10 July for retail investors, there is a vote to cancel all preference shares at the tender price. If that motion is successful all shareholders who by 16 July registered to participate, regardless of their voting choice, will receive an additional 2p voting fee. By 19 June, RSAB shares were trading at around 120p in anticipation.