Expanding its strategic review, Sirius International Insurance Group has launched a formal process to sell the company.
Earlier, the Board of Directors of the company engaged Barclays to assist in the review of the terms of a capital raise arrangement as compared to other potential strategic alternatives.
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The sales process has been launched following the review of multiple expressions of interest with the representatives of the company’s majority shareholder CM Bermuda.
CM Bermuda is a wholly-owned subsidiary of Shanghai-based China Minsheng Investment Group (CMIG).
Sirius Group president and CEO Kernan Oberting said: “I am pleased that we have secured CM Bermuda Limited’s commitment to launch a coordinated sales process to ensure the engagement necessary to facilitate an optimal outcome.”
Last year, A.M. Best and Fitch Ratings turned negative on Sirius Group, citing adverse impacts from its association with CIMG.
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By GlobalDataThey also pointed out the deteriorating operating performance metrics that have impacted the firm since 2017.
Commenting on the development, CMIG International Holding chairman Peter Tan said: “We appreciate the opportunity to work cooperatively and collaboratively with the management team and the Strategic Review Committee to achieve an optimal outcome for Sirius Group.
“The involvement of key stakeholders is critical to ensuring an orderly and successful outcome for any transaction.”
Meanwhile, there is surge in market volatility and significant decreases in share prices owing to coronavirus outbreak. It has created some uncertainty around the recent mergers and acquisitions.
