New suitor steps into takeover saga
Flagstone Re has made an offer to the Board of IPC Re to acquire all of IPC’s outstanding shares.
Flagstone believes its offer is superior to the pending offer made by Validus “on both a market value and tangible book value per share basis”, and that it “offers a superior value proposition for the continuing shareholder”.
Flagstone would exchange 2.638 of new common shares for each IPC common share plus $5.50 per share in cash for total consideration of $33.62 compared to IPC Re’s price of $27.77 based on today’s closing common equity prices.
Flagstone chairman, Mark Byrne, said: “Our offer contains a materially greater cash component and offers a greater overall value to IPC shareholders. Our offer is not subject to financing and is made on a friendly basis, with a plan to work with the existing board and management of IPC to preserve the business and franchise value of IPC in the combined entity. We believe this approach together with the significant opportunities brought to the combined entity via Flagstone’s global underwriting platform and industry-leading technical infrastructure will maximize value for both IPC and Flagstone shareholders. We have substantially completed our confirmatory due diligence with no issues identified to date.”
Flagstone Re will host a webcast and conference call on Monday July 6th at 10am EDT to discuss their offer. The webcast will be available for viewing via a link on the website at www.flagstonere.com.