Company: MHLA
Filing Date: 2025-03-26
Form Type: DEFM14A
Source: 0001104659-25-028254
Chunk: 119

Company: Maiden Holdings, Ltd.
Filing Date: 2025-03-26
Form: DEFM14A
Chunk 119
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 of up to $125 million, payable in cash, Maiden shares or a combination of cash and Maiden shares, if Kestrel’s 2027 EBITDA was between $30 million and $75 million.

The Revised June 19 Proposal also accepted the June 12 Counterproposal’s post-closing composition of the Maiden board. Following discussions among the parties that day, each of Kestrel and AmTrust indicated that it was interested in pursuing a business combination with Maiden on the terms set out in the Revised June 19 Proposal, and the parties set out to document such agreement in a non-binding letter of intent.

On June 20, 2024, Mr. Haveron informed the Maiden board that the parties had reached an agreement in principle to pursue a transaction on terms consistent with the Revised June 19 Proposal.

On June 21, 2024, the Maiden board held a meeting at which Maiden management and representatives of IAP, Paul, Weiss and Appleby were in attendance. The Maiden board discussed the Revised June 19 Proposal and asked questions of Maiden management and representatives of IAP. Maiden management and representatives of IAP explained how the earnout consideration, tied to Kestrel achieving specified EBITDA targets, was designed to de-risk the uncertainties related to Kestrel realizing its business plan. Mr. Haveron also provided an update regarding the work undertaken by Maiden’s independent third-party actuary and independent reinsurance broker with respect to a potential Commutation or retrocession of the AmTrust reinsurance liabilities. Following these deliberations, the Maiden board authorized Maiden management to deliver to Kestrel and AmTrust a written letter of intent containing the terms set forth in the Revised June 19 Proposal.

On June 22, 2024, representatives of Paul, Weiss provided a draft letter of intent to representatives of Skadden and representatives of Kramer Levin Naftalis & Frankel LLP, legal advisor to AmTrust (“Kramer Levin”), containing the material terms of the Revised June 19 Proposal (the “Letter of Intent”). The draft Letter of Intent also indicated that the transaction would be structured as a “double-dummy” in which a newly formed corporation for U.S. tax purposes would acquire both Maiden and Kestrel, which would result in a transaction that would not be taxable to Maiden shareholders or the Kestrel equityholders, and included a 45-day exclusivity period which could be extended by an additional 15 days.

Between June 22, 2024 and June 30,