Fairfax Provides American Safety with Waiver under Merger Agreement

Bermuda-based American Safety Insurance Holdings, Ltd. announced that Fairfax Financial Holdings Limited has provided the company “with a waiver of certain provisions under the merger agreement between the companies.”

Fairfax concluded an agreement to buy American Safety for $306 million in an all-cash deal last June.

The bulletin said the “waiver will enable American Safety’s Board of Directors to provide, consistent with its fiduciary duty, Catalina Holdings (Bermuda) Ltd. access to certain non-public information relating to American Safety, and to engage in discussions and negotiations with Catalina regarding its proposal to acquire American Safety.”

Catalina specializes in acquiring and managing run-off properties. Fairfax had previously indicated that it planned to sell American Safety’s reinsurance unit.

Source: American Safety

Topics Mergers & Acquisitions