Company: MHLA
Filing Date: 2025-03-26
Form Type: DEFM14A
Source: 0001104659-25-028254
Chunk: 115

Company: Maiden Holdings, Ltd.
Filing Date: 2025-03-26
Form: DEFM14A
Chunk 115
---
 check to determine whether a retrocession of the AmTrust reinsurance liabilities to a third party was feasible on terms more favorable to Maiden than a commutation of the AmTrust reinsurance liabilities to AmTrust. After further discussion, the Maiden board agreed that Maiden management should continue discussions with Kestrel and AmTrust, including with respect to a potential commutation or retrocession of the AmTrust reinsurance liabilities.

On April 24, 2024, Maiden delivered a non-binding letter of intent to representatives of Kestrel indicating Maiden’s interest in exploring a potential business combination of Maiden and Kestrel (the

<div align='center'>73</div>

TABLE OF CONTENTS

“April 24 Proposal”). The April 24 Proposal proposed that Maiden would acquire 100% of the equity of Kestrel for $130 million consisting of:

•

closing consideration of $78 million payable at closing of a transaction in Maiden shares;

•

earnout consideration of up to $52 million payable, at the option of Maiden, in either cash, Maiden shares or a combination of cash and Maiden shares, if Kestrel’s 2026 EBITDA was between $28.6 million and $57.2 million; and

•

additional earnout consideration of between $26.3 million to $27.5 million payable, at the option of Maiden, in either cash, Maiden shares or a combination of cash and Maiden shares, if Kestrel’s 2026 EBITDA exceeded $57.2 million.

The April 24 Proposal also assumed (among other items) that, contemporaneous with the acquisition of Kestrel, Maiden would acquire the AmTrust Insurance Companies and commute certain reinsurance liabilities ceded by AmTrust to Maiden not covered by the Loss Portfolio Transfer and Adverse Development Cover Agreement, dated July 31, 2019, between Cavello Bay Reinsurance Limited, a subsidiary of Enstar Group Limited, and Maiden Reinsurance Ltd., a subsidiary of Maiden (the “Commutation”) and that Kestrel would appoint at least two representatives to the Maiden board.

Over the course of the next several weeks, Mr. Haveron and representatives of IAP engaged in various discussions with representatives of Kestrel and Evercore. At the same time, Maiden engaged in initial discussions with independent third-party actuaries and independent reinsurance brokers regarding their potential engagement in connection with a Commutation or retrocession of the AmTrust reinsurance liabilities.

On May 24, 2024, Kestrel delivered