Hamilton to buy back $109.5m of stock from Blackstone at ‘attractive’ price
Bermuda-based Hamilton Insurance Group has agreed to buy back $109.5 million worth of shares from Blackstone, one of its original investors from a decade ago.
The purchase of the 9.1 million Class A shares from funds affiliated with Blackstone Alternative Solutions LLC at $12 per share, represents a 12.0% discount to the 30-day volume weighted average price of the Company’s Class B common shares. The total purchase price for the shares is $109.5 million.
Hamilton said it will fund the purchase through a loan, which the company intends to repay with funds withdrawn from the Two Sigma Hamilton Fund. The company expects to close the repurchase transaction tomorrow subject to customary closing conditions.
Hamilton made the announcement shortly after releasing first quarter results which saw it triple its net profit due to rises in its investment holdings.
The common shares purchased by Hamilton will be cancelled and the Company will have 101,878,284 shares outstanding following the repurchase transaction.
“We are very pleased to have this opportunity to repurchase Hamilton shares at an attractive price and return capital to our shareholders,” said Pina Albo, CEO of Hamilton. “We are also grateful to BAS for its support and investment in Hamilton over the years. This transaction allows BAS to fully exit an investment that was made over ten years ago, resulting in meaningful earnings per share, book value per share, and ROE accretion to Hamilton shareholders.
“Along with the strength of our first quarter earnings, and our recent AM Best rating upgrade, this transaction should create significant value for our shareholders, while not impeding our plans for strategic growth in both specialty insurance and reinsurance at this favourable time in the market cycle.”
BAS commented: “We thank Hamilton for the partnership over the past ten years and wish them continued success in the future.”
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