Company: KG
Filing Date: 2025-03-26
Form Type: 424B3
Source: 0001104659-25-028251
Chunk: 116

Company: Kestrel Group Ltd
Filing Date: 2025-03-26
Form: 424B3
Chunk 116
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”). The June 11 Proposal valued Kestrel at up to $226 million and proposed:

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closing consideration of 47.477 million Maiden shares, which at that time had a value of approximately $101 million based on a 30-day volume-weighted average price of the shares;

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earnout consideration of up to $125 million, payable, at the option of Maiden, in cash, Maiden shares or a combination of cash and Maiden shares, if Kestrel’s 2027 EBITDA was between $30 million and $75 million; and

•

no additional earnout consideration if Kestrel’s 2027 EBITDA exceeded $75 million.

The other terms of the June 11 Proposal with respect to assumptions and governance were consistent with the May 24 Counterproposal.

On June 12, 2024, representatives of Evercore sent an email to Maiden management and representatives of IAP proposing a closing consideration of approximately 65.3 million Maiden shares, which implied a value of Kestrel of up to $264 million but otherwise accepted the economic terms of the June 11 Proposal (the “June 12 Counterproposal”). The June 12 Counterproposal also proposed that the Maiden board would consist of nine members, with KILH having the right to nominate two directors and AmTrust having the right to nominate one director (in addition to Mr. Zyskind).

During this time, representatives of Paul, Weiss and Skadden engaged in discussions regarding potential transaction structures that would provide the Maiden U.S. shareholders and the Kestrel equityholders a tax deferral.

On June 14, 2024, the Maiden board held a meeting at which Maiden management and representatives of IAP, Paul, Weiss and Appleby were in attendance. Mr. Haveron provided the Maiden board with an update about both the June 11 Proposal and June 12 Counterproposal and indicated that negotiations were ongoing. Mr. Haveron also provided an update regarding the preliminary work undertaken by Maiden’s independent third-party actuary and independent reinsurance broker, in addition to discussions with AmTrust, with respect to a potential Commutation or retrocession of the AmTrust reinsurance liabilities. Following discussions among the Maiden board members, Maiden management and Maiden’s advisors, the Maiden board authorized Maiden management to continue the discussions with Kestrel and AmTrust.

On June 19, 2024, Maiden delivered an initial counterproposal to Kestrel in the morning (the “Initial June 19 Proposal”). The Initial June