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NEW YORK - Ambac Financial Group, Inc. (NYSE:AMBC), currently trading at $7.19 and showing significant volatility with a 39% decline over the past six months according to InvestingPro data, announced Monday it has extended the deadline for the sale of its legacy financial guarantee businesses to December 31, 2025, from the previous July 3, 2025 date.
The $420 million cash transaction with funds managed by Oaktree Capital Management, L.P. involves the sale of Ambac Assurance Corporation and Ambac UK. The deal value represents a significant premium to Ambac’s current market capitalization of $334 million, with the stock trading at just 0.39 times book value.
Both companies confirmed they remain committed to completing the deal, which is awaiting final regulatory approval from the Wisconsin Office of the Commissioner of Insurance (OCI). Oaktree continues to work with regulators to satisfy remaining closing conditions.
"We continue to await final regulatory approval for this strategic transaction and remain aligned with Oaktree and confident in completing the sale," said Claude LeBlanc, President and CEO of Ambac.
Greg Share, Oaktree Managing Director, stated, "Oaktree has been actively working towards, and is committed to, obtaining the final regulatory approval from the OCI to close on the acquisition."
The companies have also agreed to modifications including a conversion right for the warrant to purchase Ambac common stock that Oaktree will receive at closing, arrangements regarding Ambac’s existing lease obligations, and treatment of certain expenses allocated to Ambac Assurance Corporation prior to closing.
Ambac Financial Group is an insurance holding company headquartered in New York City focused on specialty P&C distribution and underwriting. Oaktree Capital Management is a global investment manager with $203 billion in assets under management as of March 31, 2025.
Full details of the amendment will be disclosed in a Current Report on Form 8-K to be filed with the SEC, according to the company’s press release statement. The company’s next earnings report is scheduled for August 11, 2025, where investors will gain more clarity on the transaction’s progress and financial impact.
In other recent news, Ambac Financial Group reported its first-quarter 2025 earnings, revealing a net loss from continuing operations of $16 million, which translates to a loss of $0.58 per share. This result fell short of the consensus forecast, which predicted a loss of $0.07 per share, as the actual earnings per share came in at -$0.13. However, Ambac’s revenue exceeded expectations, reaching $41 million against a forecast of $36 million. This represents a 27% year-over-year increase, largely driven by a 129% rise in revenue from the Dorado segment. Despite the positive revenue performance, the company’s stock experienced a decline, reflecting investor concerns over the larger-than-expected loss. Ambac has been focusing on expanding its MGA platform, launching six new MGAs in 2024, with two achieving profitability within a year. Looking ahead, Ambac aims to achieve an adjusted EBITDA of $80-90 million by 2028, as stated by its CEO, Claude LeBlanc. The company is also in the process of selling its legacy business to transform into a pure-play specialty P&C insurer.
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