The shareholders of American Safety Insurance Holdings (ASI) have approved the agreement and plan of merger of the company with Fairfax Bermuda Holdings.

The agreement was signed on 2 June 2013, whereas it was amended on 7 August 2013.

Under the terms of the merger deal, the company shareholders will receive $30.25 for each share of the company’s common stock.

About 84.48% of the outstanding shareholders voted at the special general meeting on 26 August, of which about 99.39% voted in favor of the merger.

The transaction, which is subject to regulatory approvals, is expected to close in the fourth quarter of 2013.

Bermuda-based ASI offers solutions to reinsurance and alternative risk markets outside the US.

Fairfax expects several of the American Safety specialty lines groups to move to Crum & Forster and Hudson, while providing it with $480m of additional investable assets.

BofA Merrill Lynch is acting as exclusive financial advisor and Shearman & Sterling LLP as legal counsel to American Safety, while Torys LLP is the legal counsel to Fairfax.