Arch reveals details of share sale
Arch Capital Group has announced that AIG-affiliated shareholders are selling an additional 707,210 common shares in Arch.
The sale is at a public offering price of $92.50 per common share, less underwriting discounts and commission, with the total value of the stake being sold coming to $65.4 million.
The sale is part of a larger Arch share sale by AIG that is worth around $604 million at current market prices. Arch said on June 8 that it had launched an underwritten public secondary offering of 6,381,410 common shares “by certain selling shareholders affiliated with American International Group.”
In August 2016 AIG sold its 100 percent interest in United Guaranty to Arch, and recieved the payment partially in Arch stock.
Arch clarified that proceeds from the sale of common shares pursuant to the public offering of additional shares will be received by the selling shareholder. The company itself will not receive any proceeds from the sale of additional common shares pursuant to the public offering.
Arch Capital Group offers insurance, reinsurance and mortgage insurance.