Company: KG
Filing Date: 2025-03-26
Form Type: 424B3
Source: 0001104659-25-028251
Chunk: 619

Company: Kestrel Group Ltd
Filing Date: 2025-03-26
Form: 424B3
Chunk 619
---
 will be surrendered for no consideration, in each case, in accordance with the terms and subject to the conditions set forth in the Combination Agreement and the Ancillary Agreements (as defined therein) including, without limitation, the Statutory Merger Agreement, by and among Parent, US NewCo and Bermuda Merger Sub (the “ Merger Agreement ”, and collectively, the “ Transaction Agreements ”) (the transactions described above and the other transactions contemplated by the Transaction Agreements, the “ Transaction ”). At your direction and with your consent, we have assumed, for purposes of our financial analyses and this opinion, that (i) the Earnout Shares issued as part of the Consideration will be payable in full to the holders of Company Units pursuant to the terms of the Combination Agreement and have an aggregate value equal to $45,000,000, without any discount or other adjustment (for risk of payment, the time value of money or otherwise) and (ii) the Second Merger Consideration issued as part of the Consideration will have a value upon issuance equal to an equivalent number of Parent Shares based upon the 30-day volume weighted average price of Parent Shares on the date of this opinion. The terms and conditions of the Transaction are more fully set forth in the Transaction Agreements.

TABLE OF CONTENTS

You have asked us whether, in our opinion, the Consideration to be received by the Company Equityholders in the Transaction pursuant to the Combination Agreement is fair, from a financial point of view, to Parent and its shareholders.

In arriving at our opinion, we have, among other things:

(i)

reviewed a draft, dated December 29, 2024, of the Combination Agreement (the “Draft Combination Agreement”);

(ii)

reviewed certain non-public financial and operating information relating to the business, operations and prospects of the Company furnished to us by management of the Company, including certain internal analyses and financial forecasts and projections (including assumptions thereto) relating to the Company that were prepared by management of the Company, which we have been directed by you to utilize in our financial analyses for purposes of delivering our opinion;

(iii)

compared certain financial information of the Company with similar information, to the extent available, for certain other companies that we deemed relevant whose equity securities are publicly traded;

(iv)

reviewed the reported prices and trading activity for the Parent Shares;

(v)

compared the financial terms of the Transaction with the financial terms, to the extent publicly available, of certain other transactions that we deemed relevant;

(v