Company: MHLA
Filing Date: 2025-03-26
Form Type: DEFM14A
Source: 0001104659-25-028254
Chunk: 132

Company: Maiden Holdings, Ltd.
Filing Date: 2025-03-26
Form: DEFM14A
Chunk 132
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 participate in discussions or negotiations with a person or group who has made an unsolicited bona fide Takeover Proposal, which the Maiden board determines in good faith, after consultation with its financial advisors and outside legal counsel, constitutes or would reasonably be expected to lead to a Superior Proposal;

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that the combination agreement allows the Maiden board, under specified circumstances, to change or withdraw its recommendation to Maiden shareholders with respect to the first merger resolution in response to a Superior Proposal or Intervening Event (as defined below);

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that the consideration payable to the Kestrel equityholders at the closing is a fixed amount of cash and a fixed number of Bermuda NewCo shares and, therefore, Maiden shareholders will not experience any dilution as a result of fluctuations in the market price of Maiden shares following the announcement of the transaction;

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that a significant portion of the Kestrel merger consideration is in the form of an earnout that will only be payable if the Kestrel Business realizes certain financial projections in the first three years following closing, which partially mitigates the risk that the Kestrel Business underperforms; and

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that the mergers were structured to be tax-efficient to the Maiden shareholders and Maiden for U.S. federal income tax purposes (as more fully described in the section entitled “Tax Consequences of the Combination — U.S. Federal Income Tax Consequences”).

The Maiden board also considered certain countervailing factors in its deliberations concerning the transaction, including:

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the possibility that the anticipated benefits and synergies from the transaction could fail to materialize to the extent anticipated;

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that the Kestrel equityholders will own approximately 35.2% of the issued and outstanding Bermuda NewCo common shares (excluding shares held by Maiden Re) immediately following the consummation of the transaction and will, at closing, have the right to nominate all of the directors of the Bermuda NewCo board pursuant to the terms of the registration and investor rights agreements, and such governance arrangements could cause Maiden shareholders to have less influence over the Bermuda NewCo board than Maiden shareholders currently have over Maiden;

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TABLE OF CONTENTS

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that the control the current Kestrel equityholders will have over the combined company may discourage a third party from making an offer to acquire Bermuda NewCo in the future;

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the potential challenges of combining the businesses of Maiden and Kestrel, including the possible disruption of Maiden’s and Kestrel’s businesses that might result from the announcement of transaction, the actions necessary to consum