Company: MHLA
Filing Date: 2025-03-26
Form Type: DEFM14A
Source: 0001104659-25-028254
Chunk: 116

Company: Maiden Holdings, Ltd.
Filing Date: 2025-03-26
Form: DEFM14A
Chunk 116
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 a counterproposal indicating that, in Kestrel’s view, Maiden’s proposal undervalued Kestrel’s business (the “May 24 Counterproposal”). The May 24 Counterproposal proposed a total value of $280 million for 100% of the equity of Kestrel consisting of:

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closing consideration of 70 million Maiden shares at a share price based on the 90-day volume-weighted average price of Maiden shares, which at the time of the May 24 Counterproposal had a value of approximately $123.2 million;

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earnout consideration of up to $156.8 million payable no earlier than three years following the date on which the potential transaction closes, at the option of Kestrel, in either cash, Maiden shares or a combination of cash and Maiden shares if Kestrel’s 2027 EBITDA was between $20 million and $60 million; and

•

uncapped additional earnout consideration payable no earlier than three years following the date on which the potential transaction closes, at the option of Kestrel, in either cash, Maiden shares or a combination of cash and Maiden shares if Kestrel’s 2027 EBITDA exceeded $60 million.

The May 24 Counterproposal included (among other items) assumptions similar to those in the April 24 Proposal with respect to the acquisition of the AmTrust Insurance Companies and the Commutation. With respect to governance, Kestrel assumed that it would have representation on the Maiden board commensurate with its pro forma shareholdings in Maiden. The May 24 Counterproposal also indicated that the combined company would be rebranded as the Kestrel Group.

On June 6, 2024, the Maiden board held a meeting at which Maiden management, representatives of IAP, representatives of Paul, Weiss, legal advisor to Maiden, and representatives of Appleby (Bermuda) Limited, Bermuda counsel to Maiden’s independent directors (“Appleby”), were in attendance. Mr. Haveron provided an update to the Maiden board regarding the discussions with representatives of Kestrel and AmTrust, and informed the Maiden board that the parties had exchanged initial due diligence materials and that Maiden had received Kestrel’s projections. Representatives of IAP noted the potential uncertainties in realizing Kestrel’s projections and that the use of earnout payments would mitigate the risk that such projections were not realized. Mr. Haveron also provided an update regarding Maiden’s engagement of an independent third-party actuary and independent reinsurance broker with respect