American Safety Insurance Holdings, Ltd. announced Wednesday that Fairfax Financial Holdings Limited has increased its offer to purchase American Safety to $30.25 per share from the previously announced $29.25 per share.
The board of directors of American Safety has approved an amendment to the Merger Agreement among American Safety, Fairfax and Fairfax Holdings Bermuda Ltd. reflecting the revised price and an increase in the termination fee to $13.4 million from $9.1 million. The transaction is subject to customary conditions, including approval of American Safety’s shareholders and regulatory approvals.
Last week, American Safety Insurance Holdings, Ltd. that Fairfax Financial Holdings Limited had provided American Safety with a waiver of certain provisions under its merger agreement, allowing American Safety’s board of directors to engage in discussions with another suitor—Catalina Holdings (Bermuda) Ltd.—and to share non-public information with Catalina
In early June, Fairfax and American Safety announced that they had entered into a $306 million merger deal, which also called for Fairfax to sell American Safety Reinsurance, Ltd., the Bermuda-based reinsurance subsidiary of American Safety, to Tower Group International Ltd. for roughly $59 million.
Source: American Safety