Company: MHLA
Filing Date: 2025-03-26
Form Type: DEFM14A
Source: 0001104659-25-028254
Chunk: 117

Company: Maiden Holdings, Ltd.
Filing Date: 2025-03-26
Form: DEFM14A
Chunk 117
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 to a potential Commutation or retrocession of the AmTrust reinsurance liabilities. This included the initial entry into a non-disclosure agreement and discussions with a leading participant in the legacy reinsurance market. After further

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discussion, the Maiden board instructed Maiden management to continue discussions with Kestrel and AmTrust regarding a potential transaction.

On June 7, 2024, representatives of Maiden, Kestrel and AmTrust as well as IAP and Evercore discussed the potential transaction. In the discussions, representatives of Kestrel and Evercore indicated that Kestrel preferred that the closing consideration be a fixed number of Maiden shares. The representatives of Kestrel and Evercore also indicated a concern that under the proposed transaction structure, an acquisition of Kestrel by Maiden, the share portion of the consideration to be paid to the Kestrel equityholders would be taxable and that Kestrel advisors were considering alternative transaction structures that would provide a tax deferral to the Kestrel equityholders.

On June 11, 2024, Maiden delivered a revised proposal to Kestrel (the “June 11 Proposal”). The June 11 Proposal valued Kestrel at up to $226 million and proposed:

•

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;

•

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