Enstar Group Limited has announced that it has agreed to acquire a further 52% stake in KaylaRe Holdings Ltd., meaning that it now holds 100% ownership of the entity, which it founded in 2016 alongside funds managed by Hillhouse Capital Management, Ltd., and the Trident V funds managed by Stone Point Capital LLC.
Under the transaction, which is valued at approximately $400 million, both Hillhouse and Stone Point will exchange their respective 44% and 8% shareholdings in KaylaRe for shares in Enstar.
This means that Hillhouse will see its overall economic interest in Enstar increase to 17.1% from 9.9%, and its voting interest increase to 9.7% from 3.3%.
For Stone Point, its overall economic interest in Enstar increases to 7.6% from 6.9%, and its voting interest increases to 9.1% from 8.2%.
Enstar’s Chief Executive Officer (CEO), Dominic Silvester, commented; “This transaction allows us to take full ownership of an important reinsurance platform. It will also enhance our group capital position and equity base. KaylaRe has exceeded our expectations to date, and as sole owner, we will continue to use it as an integral part of our legacy growth strategy. We look forward to the ongoing support of Hillhouse and Stone Point as key partners and shareholders of Enstar.”
The agreement remains subject to regulatory approval and is expected to close in the first-quarter of 2018.
