Flagstone is expected to exchange 2.638 of new common shares for each IPC common share
Flagstone Reinsurance Holdings (Flagstone), a multi-line reinsurance and insurance, has made an offer to the Board of IPC Re to acquire all of IPC’s outstanding shares.
Under its offer, Flagstone would exchange 2.638 of new common shares for each IPC common share (including $5.5 per share in cash for total consideration of $33.62), compared to IPC Re’s price of $27.77 based on July 1st closing prices.
Mark Byrne, Chairman of Flagstone, said: “Our offer is not subject to financing and is made on a friendly basis, with a plan to work with the existing board and management of IPC to preserve the business and franchise value of IPC in the combined entity.”
As per Validus initial offer, it stated to provide IPC shareholders a 24.9% premium based on IPC’s and Validus’ closing prices on March 30, 2009.
Flagstone stated that its offer is better then the initial offer made by Validus, on both a market value and tangible book value per share basis.