ACP Re, the Bermuda reinsurer owned by AmTrust Financial Services, will soon acquire Tower Group after 98.5 percent of the insurer’s shareholders approved the takeover.
If the deal closes, shareholders are expected to receive $2.50 per share from ACP Re.
Tower and ACP Re entered into a merger agreement in January 2014, and in May, the deal was amended so that consideration was reduced from $3 per share to $2.50 per share.
Tower also received a competing bid from Euroins Insurance Group (EIG), a Bulgarian insurer which represented a 50 percent premium on the offer from AmTrust. The insurer rejected the bid, stating that the proposal was less certain, riskier for Tower and would take longer to complete as compared to the transaction contemplated by the merger agreement with ACP Re.