Birmingham, Alabama headquartered Vesta Insurance Group has entered into an agreement to sell its remaining stake of Affirmative Insurance Holdings for $78 million.
Vesta will sell 5.2 million shares to a company jointly owned by Delaware Street Capital and JC Flowers & Co. for the equivalent of $15.00 per share. Vesta has already sold two million shares of Affirmative for $14 each.
The 5.2 million shares are divided between Vesta’s primary insurance company, which owns approximately 4.2 million shares and its holding company, which owns approximately one million. The transaction is subject to customary closing conditions, including the receipt of necessary regulatory approvals, and is expected to close once the approvals are granted.
Vesta said it will use the $78 million income from the sale to support its property-casualty operations. Meanwhile, the news of Vesta’s divestment has boosted its stock price by 6.7% to $2.99.