Company: KG
Filing Date: 2025-03-10
Form Type: S-4
Source: 0001104659-25-021993
Chunk: 124

Company: Kestrel Group Ltd
Filing Date: 2025-03-10
Form: S-4
Chunk 124
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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 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);

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Mr. Luke Ledbetter would serve as chief executive officer, Mr. Terry Ledbetter would serve as executive chairman and Mr. Haveron would serve as President and Chief Financial Officer of the combined company;

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consistent with the December 15 Counterproposal, the combined company would have a three-year option to acquire the AmTrust Insurance Companies after closing and the AmTrust Insurance Companies would continue to be operated exclusively to underwrite Kestrel business;

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the definitive agreement would include a “force-the-vote” provision, such that, if Maiden received a proposal from a third party that was financially superior to the transaction with Kestrel, Maiden could not terminate the combination agreement, but the Maiden board could change its recommendation to Maiden shareholders;

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if the Maiden board changed its recommendation and the Maiden shareholders did not approve the transaction with Kestrel, Maiden would be required to pay a $6.5 million termination fee to Kestrel;

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if the Maiden board recommended in favor of the transaction with Kestrel but the Maiden shareholders did not