Allied World shareholders approve Fairfax’s $4.9bn merger deal
Fairfax Financial has secured approval from Allied World shareholders for its proposed $4.9bn merger deal.
Allied’s shareholders approved the two proposals relating to the merger deal during a special meeting.
The shareholders approved changing of the company’s Articles of Association to remove restriction on the voting rights of a holder of 10% or more of Allied’s ordinary shares.
Another proposal that got approved was the payment from a Fairfax subsidiary to be done as soon as possible following the completion of a stock exchange offer.
As part of it, also agreed upon is the special dividend of $5.00 per ordinary share to Allied’s shareholders just before the completion of the exchange offer.
The shareholders had agreed to forgo the quarterly dividend of $0.26.
Allied World president and CEO Scott Carmilani said: “We are pleased with the overwhelming support we received today from our shareholders. With today’s vote, we move one step closer to completing the transaction with Fairfax, to the benefit of our shareholders, customers, business partners and employees.”
Last December, Fairfax had entered into a definitive agreement to acquire 100% of Allied World Assurance in a cash and stock transaction.
Fairfax has gone ahead with the acquisition move to further diversify its risk portfolio with the basis that the growing global footprint of Allied World is largely complementary to its own existing operations in several countries.
As per the deal, shareholders of Allied World are to receive a combination of Fairfax subordinate voting shares along with cash equivalent to $54.00 per each of the company’s shares.
The transaction is expected to close in the second quarter of the year with few more customary conditions and approvals to meet.
Image: Allied World’s shareholders approve acquisition proposal from Fairfax. Photo: courtesy of stockimages/Freedigitalphotos.net.