Company: KG
Filing Date: 2025-03-24
Form Type: S-4/A
Source: 0001104659-25-027242
Chunk: 120

Company: Kestrel Group Ltd
Filing Date: 2025-03-24
Form: S-4/A
Chunk 120
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, 2024, the Maiden board held a meeting at which Maiden management and representatives of IAP, Paul, Weiss and Appleby were in attendance. The Maiden board discussed the Revised June 19 Proposal and asked questions of Maiden management and representatives of IAP. Maiden management and representatives of IAP explained how the earnout consideration, tied to Kestrel achieving specified EBITDA targets, was designed to de-risk the uncertainties related to Kestrel realizing its business plan. Mr. Haveron also provided an update regarding the work undertaken by Maiden’s independent third-party actuary and independent reinsurance broker with respect to a potential Commutation or retrocession of the AmTrust reinsurance liabilities. Following these deliberations, the Maiden board authorized Maiden management to deliver to Kestrel and AmTrust a written letter of intent containing the terms set forth in the Revised June 19 Proposal.

On June 22, 2024, representatives of Paul, Weiss provided a draft letter of intent to representatives of Skadden and representatives of Kramer Levin Naftalis & Frankel LLP, legal advisor to AmTrust (“Kramer Levin”), containing the material terms of the Revised June 19 Proposal (the “Letter of Intent”). The draft Letter of Intent also indicated that the transaction would be structured as a “double-dummy” in which a newly formed corporation for U.S. tax purposes would acquire both Maiden and Kestrel, which would result in a transaction that would not be taxable to Maiden shareholders or the Kestrel equityholders, and included a 45-day exclusivity period which could be extended by an additional 15 days.

Between June 22, 2024 and June 30, 2024, representatives of Paul, Weiss, Skadden and Kramer Levin, on behalf of their respective clients, negotiated revisions to the Letter of Intent, including to provide that (i) the earnout consideration would be payable solely in shares (unlike the Revised June 19 Proposal, which contemplated the combined company had the option to pay in cash, shares or a combination thereof), (ii) the parties would cooperate to rebrand the combined company as the “Kestrel Group” and (iii) Maiden Reinsurance Ltd. and Maiden’s directors and officers would enter into voting agreements in support of the transaction. On June 30, 2024, each of Maiden, Kestrel and AmTrust executed the Letter of Intent.

Thereafter, each of Maiden, Kestrel and AmTrust opened a virtual data room to facilitate the other parties