Company: KG
Filing Date: 2025-03-10
Form Type: S-4
Source: 0001104659-25-021993
Chunk: 123

Company: Kestrel Group Ltd
Filing Date: 2025-03-10
Form: S-4
Chunk 123
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estrel 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; and

•

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:

•

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,