Company: MHLA
Filing Date: 2025-03-26
Form Type: DEFM14A
Source: 0001104659-25-028254
Chunk: 123

Company: Maiden Holdings, Ltd.
Filing Date: 2025-03-26
Form: DEFM14A
Chunk 123
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 advised that while he appreciated the call, Kestrel was focused on proposals from alternative capital providers.

At a Maiden board meeting held on November 26, 2024 to discuss Maiden third-quarter financial results, Mr. Haveron provided the Maiden board with an update regarding potential MGA acquisitions that Maiden management was reviewing.

During the week of December 2, 2024, Mr. Haveron engaged in a series of discussions with representatives of AmTrust on potential transaction terms that Kestrel might consider favorable relative to other strategic opportunities Kestrel had available to it, including an alternative transaction structure that did not include the acquisition of the AmTrust Insurance Companies or the Commutation, as well as providing some cash consideration at closing. At the same time, Mr. Haveron also consulted with IAP on revised transaction parameters based on the preliminary financial analysis IAP had previously conducted.

On December 9, 2024, Mr. Haveron met with representatives of Kestrel and AmTrust in person at Kestrel’s offices in Dallas, Texas to discuss a potential transaction on revised terms (the “December 9 Proposal”). The December 9 Proposal, which valued Kestrel at $125 million, proposed that Maiden and Kestrel would enter into a business combination transaction in which Maiden shareholders would receive one share of the combined company for each of their Maiden shares and the Kestrel equityholders would receive closing consideration consisting of $25 million in cash and $100 million in convertible preferred shares of the combined company. The December 9 Proposal did not include an earnout and did not contemplate the acquisition of the AmTrust Insurance Companies or the Commutation, but did propose that Maiden would have a two-year option to acquire the AmTrust Insurance Companies. The December 9 Proposal also contemplated that the board of directors of the combined company would consist of nine directors, two of whom would be nominated by KILH and two of which would be nominated by AmTrust.

On December 15, 2024, representatives of Kestrel delivered a counterproposal to Maiden management in response to the December 9 Proposal (the “December 15 Counterproposal”). The December 15 Counterproposal proposed that Maiden and Kestrel would enter into a business combination transaction in which Maiden shareholders would receive one share of the combined company for each of their Maiden shares and the Kestrel equityholders would receive:

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closing consideration consisting of $40 million in cash and 60 million common shares of the combined company valued at $90 million