Amwest Insurance Group Inc. has received an offer from Bonds.com Inc. to buy out its public shareholders for $7.50 a share. Amwest, a national surety bonds and California commercial auto underwriter, said it is reviewing the proposal.
The deal values Amwest at about $32.4 million, but about 70 percent of the company’s 4.32 million shares are held by insiders. In August, Amwest announced it was seeking a strategic alliance to raise new capital to improve its financial condition.
A.M. Best had lowered the company’s key insurance financial strength rating to”B,” or fair, from “A-minus,” or excellent, and placed the company under review with negative implications after the company reported lower-than-expected second-quarter earnings.
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