$1.6bn SiriusPoint takeover dies
Billionaire Daniel Loeb is “no longer exploring” an acquisition of Bermudian-headquartered global specialty re/insurer, SiriusPoint Ltd.
In a filing on Friday with the US Securities and Exchange Commission, Mr Loeb said the parties “have been unable to reach consensus on the value of a potential transaction”.
The stock price of SiriusPoint fell by more than nine per cent on Friday in trading on the New York Stock Exchange.
Friday’s news came only a month after Mr Loeb signalled his intentions regarding SiriusPoint in another filing with the SEC.
Mr Loeb, the CEO and founder of New York-based asset management firm Third Point LLC, sits on the board of SiriusPoint. He owns a 9.34 per cent stake in the company.
On Friday, SiriusPoint acknowledged Mr Loeb’s decision to conclude transaction discussions.
After he expressed an interest in acquiring SiriusPoint on April 12, the board formed a special committee, which included all non-executive directors, excluding Mr Loeb, to consider the acquisition proposals.
The committee issued a statement saying they and management were committed to acting in the best interests of the company and all shareholders.
“To that end,” it said. “The committee, in consultation with its independent financial and legal advisers, engaged in exploratory discussions with Mr Loeb regarding a potential transaction. Ultimately, the committee was unanimous in its belief that its current strategy is the best path to deliver enhanced long-term value for shareholders.
“The company has made significant progress during the last seven months to improve underwriting performance, reduce volatility and rebalance its investment portfolio towards high-quality fixed-income assets. This was evidenced by its strong first-quarter results reported on May 3, 2023.
“SiriusPoint acknowledges Mr Loeb’s support for the company’s management team and strategy.”
The first quarter of the year was the company’s first positive quarter in nearly two years, with net income available to the company’s common shareholders of $139 million.
That compares with a net loss of $217 million in the first quarter of 2022.
The share price of SiriusPoint fell by 90 cents, or 9.04 per cent, on Friday to close at $9.06 on the NYSE.
SiriusPoint shares had hit a 52-week high of $9.98 a day previous.
The stock price is up 49.75 per cent year-over-year.
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