Sirius launches sales process after 'strategic review' with China Minsheng
Bermuda-based Sirius International Insurance Group has launched a formal process to sell the company.
The move comes after the company reviewed multiple expressions of interest with representatives of CM Bermuda, a wholly owned subsidiary of China Minsheng Investment Group Corp. (CMIG) and Sirius International Insurance Group’s (SIIG’s) controlling shareholder.
The group's majority shareholder and the Strategic Review Committee approved the launch of a formal sales process. The company, however, noted that there can be no assurance that a transaction will materialise.
The sales process will be overseen by the Strategic Review Committee, as advised by Barclays, in collaboration with a Transaction Advisory Committee including representatives of CM Bermuda and its advisors.
The board of directors of Sirius Group previously engaged Barclays Capital to assist in the review of the terms of a capital raise transaction as compared to other potential strategic alternatives for Sirius Group, and delegated to a committee comprised of independent directors (Strategic Review Committee) the review of such strategic alternatives and to submit a recommendation for approval by Sirius Group's board of directors.
Kernan (Kip) V. Oberting, president and chief executive officer of Sirius Group, said: "I am pleased that we have secured CM Bermuda Limited's commitment to launch a coordinated sales process to ensure the engagement necessary to facilitate an optimal outcome."
Peter Tan, chairman of CM Bermuda's parent, CMIG International Holding Pte., added: "We appreciate the opportunity to work cooperatively and collaboratively with the management team and the Strategic Review Committee to achieve an optimal outcome for Sirius Group. The involvement of key stakeholders is critical to ensuring an orderly and successful outcome for any transaction."
Meyer Frucher, chairman of the board, commented: "Maintaining the strength of Sirius Group's 75-year deep-rooted franchise and maximizing value for all stakeholders remains our number one priority. Our executive team supported by Sirius Group's talented and dedicated employees will continue operations as usual, as we work with CM Bermuda Limited towards completing the strategic review process and announcing a transaction expeditiously."
