D.E Shaw's Island entity to buy out James River
And if the deal goes through, James River expects to add a new Bermuda-based insurance company to its group, the company's president and chief executive Adam Abram said in a statement yesterday.
Under the deal, D.E. Shaw's Bermuda company will give James River stockholders $34.50 in cash for each share held. That price represents a discount of 1.9 percent to James River's closing price last Friday of $35.18.
As of April 25, James River had about 15.1 million shares outstanding, according to a filing with the Securities and Exchange Commission.
The transaction is not subject to a financing condition.
James River's board unanimously approved the acquisition. The company said it will actively solicit superior proposals from third parties over the next 55 days, until August 5. If the D.E. Shaw agreement is ended, affiliates of the group will receive an approximately $7.2 million termination fee.
Under terms of the deal, James River can also respond to unsolicited proposals at any time prior to stockholder approval. The transaction is expected to close in the second half of the year.
