Bermuda-based Montpelier Re Holdings Ltd. revealed that WL Ross & Co. LLC has agreed to make a $100 million investment in Montpelier through a private sale of 6,896,552 common shares at a price of $14.50 per common share.
The first $50 million purchase of common shares will close on or about June 1, 2006, and the second $50 million purchase of common shares will close upon expiration of the Hart-Scott-Rodino antitrust notification period. Prior to the second close the purchase price of the second tranche may be adjusted in certain circumstances.
“Pursuant to a Purchase Agreement entered into between the parties, the Company will grant the investing funds certain registration rights with respect to their purchase of common shares,” said the announcement. “Also, the Board of Directors of the Company intends to appoint Wilbur L. Ross to fill an existing vacancy upon the second closing of the purchase of common shares.”
Was this article valuable?
Here are more articles you may enjoy.
Businessman, Former Federal Insurance Co. Attorney Hit With $50M Florida Verdict 
US E&S Outlook No Longer Positive: AM Best 
Insurance Customers Skeptical About AI Processes and Benefits 
Why Reciprocal Insurance Exchanges Are Back in Fashion 
