Company: KG
Filing Date: 2025-03-24
Form Type: S-4/A
Source: 0001104659-25-027242
Chunk: 239

Company: Kestrel Group Ltd
Filing Date: 2025-03-24
Form: S-4/A
Chunk 239
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Sections 382 and 383 of the Code impose limitations on the use of net operating loss carryforwards and other tax attributes if one or more stockholders or groups of stockholders who own at least 5% of a company’s stock increase their ownership by more than 50 percentage points over their lowest ownership percentage within a rolling three-year period. Bermuda NewCo has determined that allowing any ownership change that would trigger application of Sections 382 and 383 of the Code could cause a non-de minimis adverse tax consequence to Bermuda NewCo or its subsidiaries. To preserve Bermuda NewCo’s and its subsidiaries’ ability to utilize their tax attributes without limitation, Bermuda NewCo has adopted provisions that generally prohibit shareholders from acquiring Bermuda NewCo’s common shares if, as a result of such acquisition, such shareholders would become Substantial Shareholders (as defined below), or in the case of shareholders that already own 4.9% or more of Bermuda NewCo’s common shares (“Substantial Shareholders”), such existing Substantial Shareholders would increase their ownership percentage, during any 3-year period in which there has been and continues to be a greater than 35% shift in the percentage stock ownership in Maiden Holdings North America, Ltd. owned by Substantial Shareholders, unless Bermuda NewCo’s directors approve any such acquisitions. See “Risk Factors — The ability of Bermuda NewCo’s subsidiaries to use net operating loss carryforwards and other tax attributes may be limited in connection with the combination or other transactions. ”

Bermuda NewCo’s directors also may, in their absolute discretion, decline to register the transfer of any shares if they have reason to believe that registration of the transfer under the Securities Act or under any U.S. state securities laws or under the laws of any other jurisdiction is required and such registration has not been duly effected. In addition, Bermuda NewCo’s directors may decline to approve or register a transfer of shares unless all applicable consents, authorizations, permissions or approvals of any governmental authority in Bermuda, the United States or any other applicable jurisdiction required to be obtained prior to such transfer shall have been obtained.

Bermuda NewCo is authorized to request information from any holder or prospective acquirer of shares as necessary to give effect to the transfer, issuance and repurchase restrictions described above, and may decline to effect any transaction if complete and accurate information is not received as requested.

Conyers Dill & Pearman Limited, Bermuda NewCo’s Bermuda counsel, has advised that while the precise form of the restrictions on transfer contained in the