Enstar repurchases $341m shares from CPP Investments

Bermuda-based Enstar Group has agreed to repurchase 1,597,712 of its own non-voting convertible ordinary shares from Canada Pension Plan Investment Board (CPP Investments).

The purchase price of $213.13 per share, totalling $341 million in aggregate, represents a 5% discount to the trailing 10-day volume weighted average price of Enstar's voting ordinary shares as of the close of business on March 22, 2023 and a 13% discount to Enstar’s book value per ordinary share as of the end of 2022.

The shares comprise all of Enstar’s outstanding non-voting ordinary shares. The transaction is scheduled to close on March 28, 2023.

Following the transaction, CPP Investments will hold 9.4% of Enstar’s outstanding voting ordinary shares and CPP Investments’ director representative will remain on the Enstar Board. CPPIB Epsilon Ontario Partnership will continue to hold 4.6% of Enstar’s outstanding voting ordinary shares.

Dominic Silvester, Enstar’s chief executive officer, said: “The transaction with CPP Investments is a compelling opportunity for Enstar to leverage its strong capital and liquidity position to execute an accretive share buyback that simplifies our share capital structure.”

Silvester added: “Following completion of the share repurchase, Enstar will remain well-positioned to take advantage of a healthy transaction pipeline. We are pleased that CPP Investments will maintain a significant interest in Enstar, and we appreciate the value they add.”