Canada-based Westaim HIIG has wrapped up the previously announced purchase of nearly 70.8% stake in Houston International Insurance Group (HIIG), for around $138.7m.
Houston headquartered HIIG is an international diversified specialty insurance provider and managing general insurance agent covering risks across the US and certain niche global markets.
The firm offers insurance services to mining; onshore oil & gas; cranes, rigging and heavy transport; professionals; hospitality; and specialty lines.
Westaim purchased an aggregate of 16,588,865 shares of HIIG from certain shareholders for $53.7m.
The company also bought 18,702,673 shares from treasury for $85m.
In order to fund the acquisition, Westaim received $75.7m from its parent company Westaim, approximately $24.3m and $22.9m from affiliates of Everest Re Group, and Catlin Group respectively. HIIG chairman and CEO has invested $10m.
Westaim president and CEO Cameron MacDonald said: "We believe that the specialty insurance market offers compelling global opportunities and this investment is consistent with our stated objective of growing book value per share at above average rates over the long-term."
Baker & McKenzie and Sidley Austin have served as legal counsel to Westaim, while Davis Polk & Wardwell has acted as counsel to the shareholders of HIIG. Locke Lord has served as counsel to HIIG.
Westaim HIIG closes 71% stake purchase in Houston International Insurance. Photo: courtesy of PinkBlue / FreDdigitalPhotos.net.