Company: MHLA
Filing Date: 2025-03-24
Form Type: 425
Source: 0001104659-25-027214
Chunk: 2

Company: Maiden Holdings, Ltd.
Filing Date: 2025-03-24
Form: 425
Chunk 2
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 NewCo surviving the Second Merger as
a wholly owned subsidiary of Bermuda NewCo. Upon the consummation of the Mergers, Maiden and Kestrel will be wholly owned subsidiaries
of Bermuda NewCo, which will be rebranded as Kestrel Group following the closing of the transactions contemplated by the Combination Agreement
(the “Transactions”).

On March 24, 2025, the Parties entered
into a second amendment to the Combination Agreement (“Amendment No. 2”), pursuant to which the exchange ratio was adjusted such that, at the closing of the Transactions,
(i) each issued and outstanding common share of Maiden, par value $0.01 per share (“Maiden shares” and each, a “Maiden share”), other than any Maiden
share underlying outstanding options to purchase Maiden shares or that are unvested or subject to a risk of forfeiture, will be
automatically canceled and converted into the right to receive one-twentieth (0.05) of a Bermuda NewCo common share, (ii) the
Kestrel Equityholders will receive an aggregate of $40,000,000 in cash and 2,750,000 common shares of Bermuda NewCo and
(iii) the Kestrel Equityholders will be entitled to receive in contingent consideration up to the lesser of (x) an
aggregate number of Bermuda NewCo shares equal to $45,000,000 divided by certain volume weighted average prices of such shares,
subject to the achievement of certain EBITDA milestones by the businesses that Kestrel conducted immediately prior to the closing
and any extensions of such businesses or related or ancillary businesses existing thereafter, subject to other terms and conditions
as set forth in the combination agreement and (y) 2,750,000 shares of Bermuda NewCo.

In lieu of the issuance of
fractional shares pursuant to Amendment No. 2, Bermuda NewCo will pay, or cause to be paid, to any holder of US NewCo interests
who would otherwise have been entitled to a fraction of a Bermuda NewCo common share, cash in an amount equal to (i) the
fractional Bermuda NewCo common shares that would otherwise be issued to such holder, multiplied by (ii) the volume weighted
average price of Maiden shares on the Nasdaq, as reported by Bloomberg, for the five consecutive trading days ending
on the third trading day immediately preceding the closing date multiplied by (iii) 20, rounded to the nearest penny, without