Bermuda-headquartered Hamilton Insurance Group, Ltd. has entered into an agreement to repurchase shares owned by funds affiliated with Blackstone Alternative Solutions LLC (BAS).
The transaction includes 9,124,729 Class A common shares which will be purchased at $12.00 per share, totalling $109,496,748.
This represents a 12.0% discount to the 30-day volume weighted average price of the Company’s Class B common shares, Hamilton noted.
The total purchase price will be funded by a loan under the company’s revolving credit facility which Hamilton intends to repay with funds withdrawn from the Two Sigma Hamilton Fund.
According to the announcement, the re/insurer expects to close the repurchase transaction on May 10, 2024, subject to customary closing conditions.
The common shares purchased by Hamilton will be cancelled and the company will have 101,878,284 shares outstanding following the repurchase transaction.
Pina Albo, CEO of Hamilton, said: “We are very pleased to have this opportunity to repurchase Hamilton shares at an attractive price and return capital to our shareholders. 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.”
Adding: “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 favorable time in the market cycle.”
BAS thanked Hamilton for its partnership over the past decades and wished the re/insurer continued success.
