Shareholders to vote on Friday
Max Capital Group and IPC have amended the terms of their merger to include a cash incentive for shareholders.
Max Capital has agreed to pay two cash dividends and deliver $2.50 per share to IPC shareholders following the closing of the
IPC-Max Capital merger. The first dividend of $1.50 per share in cash will be payable to IPC shareholders on 15 June, and the second, of $1 per share, will follow at the end of the transaction.
“The powerful strategic rationale and value creation potential of the IPC-Max Capital transaction enjoys strong investment community support and we look forward to the completion of our transaction following the shareholder meeting,” said
W Marston Becker, chairman and chief executive officer of Max Capital.
The offer follows Validus’ counter bid with a cash component of $3 a share, plus 1.1234 shares for each IPC share. IPC shareholders are to vote on the merger with Max Capital this Friday.
“The agreed dividends make an excellent transaction even more rewarding to both IPC shareholders and to all of the shareholders of the combined company. The IPC-Max Capital transaction will create a world-class insurer/reinsurer, well positioned for long-term success and superior shareholder value creation through enhanced diversification, scale and capital,” said chairman of IPC Kenneth Hammond.
“The hostile offer by Validus, on the other hand, is inferior from a valuation standpoint, is fraught with uncertainty and only serves the interests of Validus.”
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