Tryg’s £4.3 Billion Rights Offering

Latham & Watkins advised the underwriting syndicate on the offering. Kromann Reumert assisted Trygheds­Gruppen.Tryg A/S raised gross proceeds of DKK 37 billion (£4.3 billion). The offering comprises 352,505,989 new shares at DKK 105 per new share. The rights issue is the largest ever equity raise by a Scandinavian listed company.

The underwriting syndicate consisted of Danske Bank and Morgan Stanley, Citi, HSBC and Nordea.

In the offering Danske Bank and Morgan Stanley have agreed to acquire 318,109,584 preemptive rights issued by Tryg for a total price of DKK 1,485 million from TryghedsGruppen smba (TryghedsGruppen) and to sell 53,018,264 new Tryg shares resulting from the exercise of such preemptive rights at a price of DKK 133 per share pursuant to an accelerated bookbuild offering. The offering was launched on 3 March and priced 4 March 2021.

Tryg is one of the largest non-life insurance companies in the Scandinavian region. The rights issue enables Tryg to finance its contribution to the cash consideration for its acquisition of RSA Insurance Group plc (RSA), alongside Intact Financial Corporation. Following the acquisition, Tryg will retain RSA’s Swedish and Norwegian businesses, and will co-own RSA’s Danish business on a 50:50 economic basis. Intact Financial Corporation will retain RSA’s Canadian, UK and international operations.

The Latham team was led by London corporate partners James Inness (Picture) and Anna Ngo, with associate Nick Fisher. Corporate partner Ryan Benedict and capital markets lawyer Irene Pistotnik advised on US securities matters, while London corporate partner Douglas Abernethy advised on UK Takeover Code matters. Advice was provided in conjunction with Bruun & Hjejle in Denmark.

The Kromann Reumert team was led by Christina Bruun Geertsen.

Involved fees earner: Christina Bruun Geertsen – Kromann Reumert; Douglas Abernethy – Latham & Watkins; Ryan Benedict – Latham & Watkins; Nick Fisher – Latham & Watkins; James Inness – Latham & Watkins; Anna Ngo – Latham & Watkins; Irene Pistotnik – Latham & Watkins;

Law Firms: Kromann Reumert; Latham & Watkins;

Clients: Citibank; Danske Bank; HSBC; Morgan Stanley; Nordea Bank AB; Tryghedsgruppen smba;

Federica Tiefenthaler

Author: Federica Tiefenthaler