CNA Financial has proposed to acquire all of the outstanding shares of common stock of CNA Surety which are not currently owned by subsidiaries of CNA for $22.00 per share (approximately $375m) in cash, as part of its drive to expand specialty franchise.
Currently, CNA owns approximately 62% of the outstanding shares of Surety common stock through its subsidiaries.
CNA Financial chairman and CEO Thomas Motamed said, for CNA, this is an opportunity to make an additional investment in a business that company know well, while at the same time simplifying the ownership structure.
We believe that, as a wholly-owned subsidiary of CNA, Surety will be even better positioned to compete with the large, diversified commercial lines companies it faces in the surety market, Motamed said.
CNA intends to implement the transaction in a manner that will ensure that Surety would become a wholly-owned subsidiary of CNA and that all Surety stockholders would receive the same consideration for their shares.
Moreover, CNA informed Surety that it is only interested in acquiring the remaining shares of Surety, and has no interest in a disposition of its controlling interest.