The International General Insurance Holdings Company (IGI) has signed a merger deal with special purpose acquisition firm Tiberius to get listed on the Nasdaq Capital Market.
Under the agreement, IGI and Tiberius will merge their operations under a new holding company domiciled in Bermuda.
After the listing, IGI’s senior management will retain their existing roles. IGI vice chairman and CEO Wasef Jabsheh will own nearly 24% of the combined company.
As per the agreed terms, IGI shares has been priced about 1.26x its book value of $316m as of 30 June 2019 that values the deal to nearly $398m.
Wasef Jabsheh said: “Entering the public markets as a scaled, publicly-traded, pure-play specialty commercial (re)insurer enhances our ability to continue to prudently grow our business and compound tangible book value by delivering low-volatility returns.
“I am particularly pleased that I will continue to personally own a meaningful part of this company and oversee the next phase of IGI’s growth as a public company while maintaining the key tenets of the culture that has made IGI successful since inception. IGI will always deliver world class service to our clients while driving long-term total value creation for our shareholders.”
IGI president Waleed Jabsheh stated: “This transaction will allow IGI to continue to execute its organic growth plan through expanding capacity and relationships in its core Afro-Asian, European and Latin American markets, maintain high levels of capital adequacy, enhance its credit ratings over time, and facilitate its potential entry into the US excess and surplus (E&S) markets.”
The two companies’ boards have already given their nod for the transaction. Subject to regulatory approval, the transaction is scheduled to complete during the first quarter of next year.