Global specialty insurer and reinsurer SiriusPoint has entered into a standstill agreement with Third Point CEO Daniel S. Loeb following the conclusion of exploratory discussions related to Loeb’s potential acquisition of the firm.
According to SiriusPoint, the agreement provides that Loeb will not, subject to certain limited exceptions, make a take-over or purchase proposal for the firm or acquire more than 9.5% of the outstanding shares or an amount of ownership requiring regulatory approval.
Further, the agreement also provides that Loeb would not take any action in support of or make any proposal with respect to controlling, changing or influencing the firm’s management, business, capitalisation or corporate structure.
The hedge fund boss currently owns a 9.34% stake in SiriusPoint, having previously overseen the merger of his reinsurance unit, Third Point Re, with Sirius Group, which was completed in February 2021.
In April earlier this year, Loeb said he would explore options to take SiriusPoint private, in an effort to improve the company’s financial position and better execute its “turnaround strategy.”
Though in May, Loeb made a U-turn and confirmed in a regulatory filing that he was longer considering a potential acquisition to take SiriusPoint private.
Commenting on the new agreement, SiriusPoint CEO Scott Egan, said, “We welcome the standstill agreement as a strong signal of support for the progress we are making towards creating long term value in our business and for our shareholders.
“Our recent half year results were an important evidence point of our strategy and our progress so far, and we are focused on building on that momentum.
“I would like to take this opportunity to thank our employees, business partners, and customers for their continued support.”
