Alabama-based Vesta Insurance Group Inc. has entered into a definitive agreement to sell its remaining stake of Affirmative Insurance Holdings Inc. to an entity jointly owned by affiliates of each of Delaware Street Capital and JC Flowers & Co. LLC for $15.00 per share in a privately negotiated transaction.
Vesta collectively owns approximately 5.2 million shares of Affirmative common stock. Vesta’s ownership of Affirmative stock is divided between its primary insurance company, which owns approximately 4.2 million shares and its holding company, which owns approximately 1.0 million shares. The transaction is subject to customary closing conditions, including the receipt of necessary regulatory approvals, and the transaction is expected to close following regulatory approval. On June 1, 2005, Vesta sold 2.0 million shares back to Affirmative for $14.00 per share.
Vesta will receive approximately $78.0 million from the sale before expenses and plans to use the proceeds to support its property-casualty operations.
Sagent Advisors Inc. acted as financial advisor to Vesta in connection with this transaction.
Vesta is a holding company for a group of insurance and financial services companies that offer a wide range of consumer-based products.
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