Company: MHLA
Filing Date: 2025-03-26
Form Type: DEFM14A
Source: 0001104659-25-028254
Chunk: 124

Company: Maiden Holdings, Ltd.
Filing Date: 2025-03-26
Form: DEFM14A
Chunk 124
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; and

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earnout consideration consisting of up to 30 million common shares of the combined company, payable in increments of 10 million shares if Kestrel’s post-closing Year 1, Year 2 or Year 3 EBITDA was at least $10.5 million, $15.75 million and $21.0 million, respectively.

The December 15 Counterproposal also contemplated that:

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the combined company would have a three-year option to acquire the AmTrust Insurance Companies and that the AmTrust Insurance Companies would continue to be operated exclusively to underwrite Kestrel business;

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the board of directors of the combined company would consist of seven directors, four of whom would be nominated by KILH (two of whom would be independent directors) and three of whom would be nominated by AmTrust (two of whom would be independent directors); and

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Maiden would pay Kestrel a $10 million termination fee if the transaction did not close for any reason other than as a result of Kestrel’s willful and material breach of the combination agreement.

Maiden management and representatives of Kestrel and AmTrust, as well as their respective financial advisors, held a virtual meeting on December 15, 2024 to discuss the December 15 Counterproposal.

On December 16, 2024, Maiden management and representatives of Kestrel and AmTrust reached an agreement in principle for a potential business combination transaction, subject to due diligence, negotiation of definitive documentation and the approval of the Maiden board (the “Final Proposal”). Under the

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terms of the Final Proposal, which valued Kestrel at up to $167.5 million, 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 55 million common shares of the combined company valued at $82.5 million; and

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earnout consideration consisting of up to $45 million of common shares of the combined company, payable in increments of $15 million of common shares if Kestrel’s post-closing Year 1, Year 2 or Year 3 EBITDA was at least $10.5 million, $15.75 million and $21.0 million, respectively.

The Final Proposal also contemplated that:

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consistent with the December 15 Counterproposal, the board of directors of the combined company would consist