Global senior reinsurance specialist Enstar Group Limited has confirmed it is to be acquired by Sixth Street after receiving the necessary shareholder approval.
Sixth Street had previously proposed to acquire Enstar in a $5.1 billion transaction, with Liberty Strategic Capital, JC Flowers & Co. LLC and other institutional investors participating in the deal.
Upon completion of the transaction, Enstar shareholders will receive a total of $338.00 in cash per common share of Enstar, representing a total equity value of $5.1 billion.
The transaction is expected to close in mid-2025, subject to regulatory approvals and other customary closing conditions.
Upon completion of the transaction, Enstar’s common stock will no longer be publicly traded, and the insurance company will become a privately held company, but will continue to operate under the Enstar name and will maintain its current operations and business strategy.
According to the announcement, Enstar will report the final certified voting results of the special meeting in a Current Report on Form 8-K filed with the US Securities and Exchange Commission.
Enstar’s chief executive, Dominic Silvester, previously commented: “Over the past 30 years, Enstar has built a strong position in the seniors market based on our exceptional scale and track record, pricing and claims expertise and entrepreneurial culture.
“This transaction provides a complete liquidity event for shareholders and is a testament to the strength of our team. We believe this is the best next step for our shareholders and we look forward to this exciting new chapter.”
Goldman Sachs & Co. LLC is acting as financial advisor to Enstar and Paul, Weiss, Rifkind, Wharton & Garrison LLP and Hogan Lovells US LLP are acting as legal advisors.
Sixth Street is receiving financial advice from Ardea Partners LP, Barclays PLC and JP Morgan Securities LLC, while Simpson Thacher & Bartlett LLP, Debevoise & Plimpton LLP and Cleary Gottlieb Steen & Hamilton LLP are acting as legal advisors.
