A consortium of private equity firms have put $213mn behind a $2.2bn deal that will see Chinese-owned Sirius become a publicly-listed firm in the US.
In an update on the deal, which was announced in June, Sirius said that Gallatin Point Capital, The Carlyle Group, Centerbridge Partners and Bain Capital Credit had agreed to take shares in the Nasdaq-listed firm that Sirius will be merged in to.
However the (re)insurer noted that the amount of stock purchased could be reduced to $111mn if it decided to limit the level of the investment.
In addition to equity, the consortium of private equity houses will receive warrants that are exercisable for a five years after the issue date at a strike price equal to 125 percent of the merger price.
The terms of the acquisition will see Easterly – a “blank check” company - common stock exchanged for Sirius Group’s common shares at 1.05x Sirius Group’s pro forma diluted GAAP book value per share.
When the deal was first announced that value was set to be calculated as of the 30 June this year but today, Sirius said that had changed to reflect its book value per share as of 30 September.
The deal is expected to boost Sirius’ US merger and acquisition plans, which are thought to have been hampered by regulators closely scrutinising deals by privately-owned Chinese financial companies.