Company: KG
Filing Date: 2025-03-26
Form Type: 424B3
Source: 0001104659-25-028251
Chunk: 131

Company: Kestrel Group Ltd
Filing Date: 2025-03-26
Form: 424B3
Chunk 131
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 for U.S. federal income tax purposes (as more fully described in the section entitled “Tax Consequences of the Combination — U.S. Federal Income Tax Consequences”).

The Maiden board also considered certain countervailing factors in its deliberations concerning the transaction, including:

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the possibility that the anticipated benefits and synergies from the transaction could fail to materialize to the extent anticipated;

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that the Kestrel equityholders will own approximately 35.2% of the issued and outstanding Bermuda NewCo common shares (excluding shares held by Maiden Re) immediately following the consummation of the transaction and will, at closing, have the right to nominate all of the directors of the Bermuda NewCo board pursuant to the terms of the registration and investor rights agreements, and such governance arrangements could cause Maiden shareholders to have less influence over the Bermuda NewCo board than Maiden shareholders currently have over Maiden;

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that the control the current Kestrel equityholders will have over the combined company may discourage a third party from making an offer to acquire Bermuda NewCo in the future;

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the potential challenges of combining the businesses of Maiden and Kestrel, including the possible disruption of Maiden’s and Kestrel’s businesses that might result from the announcement of transaction, the actions necessary to consummate the transaction and the integration of Maiden’s and Kestrel’s businesses following consummation of the transaction;

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that the combined company will bear risks, including unknown contingent liabilities, with respect to Kestrel’s businesses arising prior to the consummation of the transaction;

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the restrictions in the combination agreement on Maiden’s conduct of business prior to the consummation of the transaction, which could delay or prevent Maiden from undertaking business opportunities that may arise, or taking other actions with respect to its operations that the Maiden board and Maiden management might believe were appropriate or desirable;

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the restrictions on Maiden’s ability to solicit possible alternative transactions under the combination agreement, including the fact that under the combination agreement, if Maiden were to receive an alternative transaction proposal that the Maiden board determines in good faith (after consultation with its financial advisors and outside legal counsel) constitutes or would reasonably be expected to result in a Superior Proposal:

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Maiden may not terminate the combination agreement in order to accept a Superior Proposal (although the Maiden board may, subject to certain conditions, change its recommendation to Maiden shareholders with respect to the first merger resolution); and

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Kestrel would have the right, subject to certain