Enstar buys back $341m in shares; CEO sees ‘compelling opportunity’

Bermuda-based re/insurer  Enstar Group has repurchased shares worth $341 million from one of its largest shareholders in what its CEO described as a “compelling opportunity” to simplify its capital structure to take advantage of a “healthy transaction pipeline”.

Enstar 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 remain one of Enstar’s largest shareholders and retain its director seat, holding 9.4% of Enstar’s outstanding voting ordinary. CPPIB Epsilon Ontario Partnership will continue to hold 4.6% of Enstar’s outstanding voting ordinary shares.

Dominic Silvester (pictured), 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.”

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