Takeover target RSA offloads Latin American unit
British insurer and takeover target Royal & Sun Alliance said Tuesday that it has agreed to sell its Latin American operations to Colombian investment group Inversiones Suramericana.
RSA said in a statement it will sell its business in Latin America to Suramericana for £403 million (553 million euros, $618 million) in cash.
The London-listed insurance firm had last month received a £5.6-billion takeover approach from Swiss rival Zurich Insurance.
The Latin American sale will be "significantly" positive for RSA's capital, according to Tuesday's statement.
The deal is not conditional on the outcome of an offer from Zurich, which was aware of the sale plan before it announced the acquisition plan in August, RSA added.
"This is the largest remaining disposal we have under way and is consistent with our stated target to substantially complete RSA's strategic refocus by the 2015 year-end results," said Chief Executive Stephen Hester.
© 2015 AFP