Catalina Holdings (Bermuda) Ltd., a consolidator in the non-life run-off sector, announced that it has signed a definitive agreement with Fairfax Financial Holdings Limited and Tower Group International, which confirms that it has agreed “to assume Tower’s rights and obligations, under a definitive Share Purchase Agreement, to acquire American Safety Reinsurance [ASRe], Ltd.,” a Bermuda subsidiary of American Safety Holdings.
Pursuant to the terms of the agreement, “Catalina agrees to purchase AS Re from Fairfax promptly upon Fairfax acquiring American Safety. The pact takes into account a previous understanding between the parties.
The transaction remains subject to customary conditions, including regulatory approval from The Bermuda Monetary Authority.
Catalina also noted that “immediately prior to entering into the agreement with Fairfax, Catalina withdrew its offer to acquire American Safety. In addition, and pursuant to the terms of the agreement, Catalina has agreed to vote its shares in American Safety in favour of the proposed acquisition of American Safety by Fairfax. The acquisition consideration will be satisfied from Catalina’s cash at hand.”
Catalina’s Chairman and Chief Executive Chris Fagan commented: “We expressed our strong interest in acquiring American Safety but it became clear to us that a better option for all was to enter into the agreement with Fairfax to acquire AS Re.
“We are delighted to have secured an agreement with Fairfax to acquire AS Re which can be quickly and efficiently combined with our existing operations in Bermuda. After our recent announcement of further equity capital commitments from our three future institutional shareholders, Catalina is very well positioned to continue developing its portfolio through further acquisitions.”
Source: Catalina Holdings (Bermuda) Ltd.