Fairfax acquisition by American Safety concludes
American Safety Insurance Holdings, Ltd. announced the successful completion of its previously announced acquisition by Fairfax Financial Holdings Limited.
American Safety is a Bermuda-based holding company offering insurance for speciality risks through its US-based programme administrator, American Safety Insurance Services, Inc., and its US insurance and Bermuda reinsurance companies.
American Safety reported that shareholders will receive $30.25 in cash for each common share they owned as of the effective time of the merger, without interest and less any applicable withholding taxes. Trading of American Safety shares is being suspended on October 3, 2013 and American Safety common shares will be delisted from the New York Stock Exchange in connection with the acquisition.
Fairfax is in the news for its bid to buy BlackBerry Ltd., the Canadian smart phone company. The Globe and Mail reported on Monday that there's a $2-a-share gap between how much BlackBerry Ltd.' s largest shareholder believes the company is worth and where some analysts stand on the company's valuation, stating: “– with investors stuck in the middle.”
The story continues: “A week after announcing its intent to purchase BlackBerry and take the company private, Fairfax Financial Holdings Ltd. has yet to tell investors who else will join the company in raising the $4.7-billion (US) necessary to complete the deal. However Fairfax chief executive Prem Watsa has repeatedly expressed his conviction that the deal will go through at the current price tag.”