Maiden and Kestrel to merge as publicly traded specialty programming group

Maiden Holdings and Kestrel Group have agreed to a merger, which can assist create a brand new publicly traded specialty packages group.

Pursuant to the agreed phrases, Maiden’s odd shares shall be transformed into rights to safe shares in a brand new Bermuda-based entity, which can purchase each Maiden and Kestrel.

This settlement values ​​Kestrel as much as $167.5 million, together with $40 million in money, 55 million widespread shares of the brand new firm valued at $82.5 million and an earnout of as much as $45 million. million {dollars} payable in widespread shares.

The mixed entity will function beneath the title Kestrel Group, and its shares shall be listed on Nasdaq.

The mixed group’s administration staff will embrace Luke Ledbetter as CEO, Terry Ledbetter as government chairman and Pat Haveron as president and CFO.

Following the merger, Kestrel will proceed its operations by means of AM Finest A-FSC XV Insurance coverage Corporations, that are subsidiaries of AmTrust Monetary Providers.

Moreover, the mixed firm can have the choice to amass these insurers from AmTrust.

The board of administrators of the brand new entity shall be composed of seven members, together with 4 chosen by a subsidiary of Ledbetters, together with two independents, and three chosen by AmTrust, together with two independents.

The deal is anticipated to shut within the first half of 2025, topic to a number of circumstances together with Maiden shareholder approval, expiration of the Hart-Scott-Rodino Antitrust Enhancements Act ready interval, approval of Nasdaq itemizing and different regulatory approvals.

Insurance coverage Advisory Companions is serving as Maiden’s monetary advisor on the transaction, whereas Paul, Weiss, Rifkind, Wharton & Garrison is offering authorized recommendation.

Appleby advises Maiden’s disinterested board members. Kestrel receives monetary recommendation from Evercore, whereas Skadden, Arps, Slate, Meagher & Flom handles its authorized issues.

Pat Haveron, CEO and CFO of Maiden, mentioned: “The Ledbetters and the whole Kestrel staff have an extended, confirmed monitor file of success within the specialty programming market, and we stay up for partnering with them to bringing worth to program managers, MGAs, reinsurers and reinsurance brokers by means of a spread of engaging specialist traces.

Kestrel President and CEO Luke Ledbetter mentioned: “The mix with Maiden will permit us to speed up our progress plan and capitalize on market tailwinds as we proceed our efforts to change into the main group of specialised packages in america.

“Maiden, Kestrel to merge as publicly traded specialty programming group” was initially created and printed by International life insurancea model owned by GlobalData.

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