The International General Insurance Holdings Company (IGI) has signed a merger deal with special purpose acquisition firm Tiberius to get listed on the Nasdaq Capital Market.
Under the agreement, IGI and Tiberius will merge their operations under a new holding company domiciled in Bermuda.
Go deeper with GlobalData
After the listing, IGI’s senior management will retain their existing roles. IGI vice chairman and CEO Wasef Jabsheh will own nearly 24% of the combined company.
As per the agreed terms, IGI shares has been priced about 1.26x its book value of $316m as of 30 June 2019 that values the deal to nearly $398m.
Wasef Jabsheh said: “Entering the public markets as a scaled, publicly-traded, pure-play specialty commercial (re)insurer enhances our ability to continue to prudently grow our business and compound tangible book value by delivering low-volatility returns.
“I am particularly pleased that I will continue to personally own a meaningful part of this company and oversee the next phase of IGI’s growth as a public company while maintaining the key tenets of the culture that has made IGI successful since inception. IGI will always deliver world class service to our clients while driving long-term total value creation for our shareholders.”
IGI president Waleed Jabsheh stated: “This transaction will allow IGI to continue to execute its organic growth plan through expanding capacity and relationships in its core Afro-Asian, European and Latin American markets, maintain high levels of capital adequacy, enhance its credit ratings over time, and facilitate its potential entry into the US excess and surplus (E&S) markets.”
The two companies’ boards have already given their nod for the transaction. Subject to regulatory approval, the transaction is scheduled to complete during the first quarter of next year.
