Validus and IPC signed a confidentiality agreement, commenced mutual due diligence
IPC Holdings (IPC) has provided an update on its efforts to maximise value for shareholders.
According to IPC, Validus and IPC have signed a confidentiality agreement, commenced mutual due diligence, and have made data rooms available to facilitate the due diligence process. Together, with its advisors, IPC has held in-person negotiations with Validus, and the two companies have exchanged contract markups.
As per Validus initial offer, it provides IPC shareholders a 24.9% premium based on IPC’s and Validus’ closing prices on March 30, 2009.
IPC said that it has received expressions of interest from other parties, and it is engaged in discussions and negotiations with them. It has also determined that if an appropriate transaction cannot be reached in near future, it would continue its review of strategic alternatives after the hurricane season.
Kenneth Hammond, Chairman of IPC, said: “Validus’s stock price has also declined by 16% since Validus’s initial offer for IPC, reducing the premium to IPC shareholders to a mere 3%. The number one priority of the IPC Board continues to be to maximise value for IPC and its shareholders, and we will continue our efforts to secure the best outcome in the most expedient way.”