Private equity funds managed by Stone Point Capital, Barry Zyskind Chairman and Chief Executive Officer of AmTrust Financial Services, George Karfunkel and Leah Karfunkel (the Karfunkel-Zyskind Family), have jointly proposed to acquire all outstanding shares of AmTrust common stock.
The Karfunkel-Zyskind Family currently owns or controls approximately 43% of the outstanding shares of AmTrust common stock.
The proposed transaction is for all shares not already owned or controlled by the Karfunkel-Zyskind Family for $12.25 per share in cash, which represents a 20.8% premium over AmTrust’s closing stock price on January 8, 2018.
Stone Point and the Karfunkel-Zyskind Family believe the acquisition would both provide common stockholders with immediate liquidity at a significant premium to current share price as well as enable AmTrust to prioritise long-term results over short-term gains.
A special committee of independent directors of the AmTrust board of directors will likely now consider the proposed transaction and make a recommendation to the AmTrust board of directors with the help of independent legal and financial advisors.
If the special committee doesn’t recommend, or the stockholders of AmTrust do not approve of the proposed transaction, the Karfunkel-Zyskind Family plans to continue as long-term stockholders of AmTrust.
Stone Point has engaged Skadden, Arps, Slate, Meagher & Flom LLP as its legal advisor and the Karfunkel-Zyskind Family have engaged Paul, Weiss, Rifkind, Wharton & Garrison LLP as their legal advisor in connection with the proposed transaction.