Global legacy re/insurance specialist Enstar Group Limited, has confirmed it is to be acquired by Sixth Street after it received the necessary shareholder approval.
Sixth Street had previously proposed to acquire Enstar in a $5.1 billion transaction, with Liberty Strategic Capital, J.C. Flowers & Co. LLC, and other institutional investors participating in the deal.
Upon closing of the transaction, Enstar shareholders are to receive a total of $338.00 in cash per ordinary share of Enstar, which represents a total equity value of $5.1 billion.
The transaction is expected to close in mid-2025, subject to regulatory approvals, and other customary closing conditions.
Once the deal completes, Enstar’s common stock will no longer be publicly listed, and the insurer will become a privately-held company, but will continue to operate under the Enstar name and will maintain its current operations and business strategy.
According to the announcement, Enstar will report the final, certified voting results of the Special Meeting in a Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission.
Enstar’s Chief Executive Officer, Dominic Silvester, previously commented: “Over the past 30 years, Enstar has built a strong position in the legacy market founded on our exceptional scale and track record, pricing and claims expertise, and entrepreneurial culture.
“This transaction provides a full liquidity event for shareholders and is a testament to the strength of our team. We believe this is the best next step for our shareholders and we look forward to this exciting new chapter.”
Goldman Sachs & Co. LLC is acting as financial advisor to Enstar and Paul, Weiss, Rifkind, Wharton & Garrison LLP and Hogan Lovells US LLP are acting as legal advisors.
Sixth Street is being advised financially by Ardea Partners LP, Barclays PLC and J.P. Morgan Securities LLC, while Simpson Thacher & Bartlett LLP, Debevoise & Plimpton LLP and Cleary Gottlieb Steen & Hamilton LLP are acting as legal advisors.
