Allied World agrees to buy Transatlantic for $3.2 billion
Allied World Assurance Co Holdings
The transaction is structured as a merger of equals, with shareholders of Transatlantic receiving 0.88 Allied World common share for each Transatlantic common share held, the companies said in a joint statement. The combined entity will have total invested assets of $21 billion, total shareholders' equity of nearly $7 billion, and total capital of $8.5 billion. As of Friday's close, shares of Allied World were trading at $58.07, while Transatlantic traded at $44.01. Following the merger, Transatlantic shareholders will own about 58 percent of the combined company on a fully diluted basis, with Allied World shareholders owning around 42 percent. Both companies' boards of directors have approved the transaction and expect a fourth-quarter closing. The deal is subject to shareholder and regulatory approval. Goldman, Sachs & Co. and Moelis & Co. LLC acted as financial advisors to Transatlantic and Gibson, Dunn & Crutcher LLP and Lenz & Staehelin acted as U.S. and Swiss legal counsel, respectively.
Deutsche Bank Securities Inc. acted as financial advisor to Allied World and Willkie Farr & Gallagher LLP and Baker & McKenzie acted as U.S. and Swiss legal counsel, respectively. (Reporting by Nadia Damouni; Editing by Dale Hudson)
© Copyright Thomson Reuters 2024. All rights reserved.