Bermuda-based insurance group Enstar’s 35-day ‘go-shop’ period, a phase in the $5.1bn buyout process by investment company Sixth Street, has ended.
As per the initial announcement in July, Enstar shareholders are set to receive $338 in cash per ordinary share upon the deal’s closure.
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This reflects an 8.5% premium over Enstar’s 90-day volume-weighted average price and a 6.9% premium over the 60-day average, as of 26 July 2024.
During the go-shop period, Enstar, with the aid of Goldman Sachs, its financial advisor, actively sought alternative acquisition proposals from 34 potential interested parties.
However, no new acquisition proposals were received following the execution of the merger agreement.
With the go-shop period now over, Enstar and its advisor have entered the ‘no-shop’ period, where the company is limited in its ability to seek or discuss alternative acquisition proposals, except as allowed by “fiduciary out” provisions.
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By GlobalDataEnstar, a Nasdaq-listed global insurance group, provides capital release solutions and has acquired more than 117 companies and portfolios since its inception in 2001.
The company operates through a network of group companies in Bermuda, the US, the UK, Continental Europe, Australia and other international locations.
At the time of the announcement, Enstar CEO Dominic Silvester said: “This transaction provides a full liquidity event for shareholders and is a testament to the strength of our team. We believe this is the best next step for our shareholders and we look forward to this exciting new chapter.”
The acquisition by Sixth Street, which secured unanimous approval from Enstar’s board, is due to be finalised in mid-2025.
This is subject to approval from Enstar’s shareholders, regulatory approvals and other standard closing conditions.
Enstar will become a privately held entity after the deal closes.
