Travelers Announces Acquisition of The Dominion of Canada for $1.1B Cash (TRV)
Property and casualty insurance provider Travelers Companies Inc (TRV) announced on Monday that it has agreed to acquire The Dominion of Canada General Insurance Company from E-L Financial Corporation for about $1.1 billion in cash.
The acquisition is expected to close in the fourth quarter of 2013. The deal is subject to regulatory approvals and other necessarily closing steps.
Travelers said it will fund the deal through a combination of debt and/or preferred stock financing, depending on market conditions. Furthermore, the company said the acquisition should not have a significant impact on planned share repurchases for 2013 and 2014.
Travelers’ Canadian segment and Dominion will be integrated and remain headquarter in Toronto.
Travelers shares were down a fraction during morning trading on Monday. The stock is up +16.18% year-to-date.
The Bottom Line
Shares of Travelers (TRV) have a dividend yield of 2.40% based on Friday’s closing price of $83.44 and the company’s annualized dividend payout of $2.00 per share.
Travelers Companies Inc (TRV) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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