James River Group Inc. said it is moving ahead with an agreement to be acquired by D.E. Shaw, a Bermuda-based private-equity firm, after receiving no other acquisition proposals.
The Chapel Hill, N.C.-based insurer said today that plans for the acquisition of the company are expected to be completed during the fourth quarter of this year. The company said it has not entered into a definitive agreement to be acquired.
Announced in June, the deal called for a period of open solicitation for other offers. The period closed Aug. 5 without any other bids. If there was a competing bid, D.E. Shaw would have received a termination fee of $7.2 million.
The deal is reportedly worth $575 million, with $34.50 in cash to be paid per share to shareholders.
The statement came during the company's second-quarter earnings announcement released today.
James River reported that net income in the second quarter increased 7 percent ($605,000) to $9.2 million (56 cents a share). Net written premiums rose 31 percent ($17 million) to $72 million. The combined ratio stood at 86.7–an increase of 3.8 points over the same period last year.
For the first six months of the year, James River said net income increased 25 percent ($3.9 million) to $19 million ($1.19 a share). Net premium rose 25 percent (up $27 million) to $135 million. The six-month combined ratio increased 0.7 points to 85 compared with last year.
The company said it was issuing no earnings guidance as it closes on the acquisition, and would hold no conference call to discuss the results.
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