Key Takeaways
- Shares of insurance company Enstar fell Monday after it agreed to be acquired by Sixth Street for $5.1 billion, or $338 per share.
- The per-share price is less than Enstar’s closing price on Friday.
- Former Treasury Secretary Steven Mnuchin’s firm, Liberty Strategic Capital, is part of the group that agreed to acquire Enstar.
Insurance company Enstar Group (ESGR) is going private. Investors don’t like the deal.
Enstar on Monday said it agreed to be taken private through a $5.1 billion acquisition led by investment firm Sixth Street. Also participating: Liberty Strategic Capital, former Treasury Secretary Steven Mnuchin’s firm.
The sale price, $338 per share, represents a more than 8% premium to Enstar’s volume-weighted average price over the past 90 days, according to the announcement. But it’s also discount to Enstar’s Friday close of $348.31. That helped pull Enstar’s shares lower Monday, with the stock recently down more than 6% to below $323.
“We believe this is the best next step for our shareholders,” Enstar CEO Dominic Silvester said in a statement.
Enstar also announced its second quarter results Monday morning. The company reported net income of $126 million, or diluted earnings per share of $8.49, up from $21 million, $1.34 per share, in the year-ago quarter.