£45m Offer recommended to shareholders.
Enstar Group has made a £45m offer for insurer Goshawk.
Goshawk’s directors said the cash offer, of 5.2p a share, would be recommended to its shareholder.
The run off specialist's offer represents a premium of approximately 49 per cent to the closing price of 3.50pence per Goshawk share on 20 June 2008.
Dominic Silvester, chief executive of the Enstar Group, said: "For some time we have thought that there was value in the Goshawk operation, and are pleased to have the opportunity both to apply Enstar's run-off expertise to Goshawk to create value for Enstar shareholders, and provide a realisation opportunity for the shareholders in Goshawk."
Michael Dawson, chief executive of Goshawk, said: "Enstar Acquisition's offer represents an option for Goshawk's shareholders to achieve finality after what has been a difficult period. Following the substantial catastrophe losses in 2005 which led to the company breaching its banking covenants, the new Board sought to ensure an effective run-off strategy for Rosemont Re, its principal subsidiary, and worked with shareholders to ensure all stakeholders' obligations were fairly discharged.
“The Board of Goshawk believes that the cash offer from Enstar Acquisitions provides both an attractive premium and certainty of value for Goshawk's shareholders and represents a realistic and satisfactory outcome for shareholders."
Enstar has received irrevocable undertakings to accept the Offer in respect of 439,926,062 Goshawk shares representing, in aggregate, approximately 50.01 per cent of the existing issued share capital of Goshawk.
