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LONDON - Third Point Investors Limited has significantly improved terms for shareholders in its proposed acquisition of Malibu Life Reinsurance SPC, increasing its redemption offer to approximately $136 million at a reduced discount to net asset value (NAV).
The company announced Wednesday that it has raised the redemption price from the initially proposed 87.5% to approximately 95.2% of reference NAV, reducing the implied discount to about 4.8%. This represents a substantial enhancement from the original proposal of a $75 million tender offer at a 12.5% discount.
The redemption offer is conditional on shareholder approval of the acquisition and related proposals at an extraordinary general meeting expected to be held on August 14, 2025.
Third Point has secured irrevocable undertakings to support the acquisition from shareholders representing approximately 45% of voting rights.
The acquisition, announced on May 21, 2025, aims to transform Third Point Investors into a fully capitalized, London-listed reinsurance operating company. As part of the transaction, the company will migrate from Guernsey to the Cayman Islands to align with Malibu’s domicile.
Under the proposed all-share combination, Third Point will acquire Malibu at its tangible book value in exchange for new ordinary shares valued at Third Point’s NAV per share. Based on current valuations, Malibu Holdings would own approximately 12% of the company following completion.
The company has also agreed to accept subscription applications totaling approximately $62 million from new and existing investors at a price equal to the initial redemption consideration per share.
According to the press release, the acquisition is expected to create a fast-growing reinsurance company targeting mid-teens return on equity by the end of 2027.
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