Westaim HIIG Limited Partnership has signed an agreement to purchase 42.5% shareholding in Houston International Insurance Group (HIIG), in a transaction valued at nearly $75m.
Headquartered in Houston, HIIG operates as a diversified specialty insurance provider and managing general insurance agent covering risks across the US and certain niche global markets. In US, the company has offices in Atlanta, Birmingham, Chicago and New York.
HIIG’s business comprises mining; onshore oil & gas; cranes, rigging and heavy transport; professional lines including miscellaneous E&O, lawyers and community banks; hospitality; specialty lines.
The initial acquisition will be completed into a two-part transaction involving the concurrent acquisition (the Initial Secondary Purchase) by the partnership for $15m of approximately 14.1% of the outstanding shares of common stock of HIIG.
Under the second phase, the partnership will subscribe $60m worth of HIIG Shares from treasury.
Westaim HIIG Limited Partnership will have the exclusive right and obligation to acquire an additional equity ownership interest of approximately 24.6%.
Westaim said that the stake acquisition will complement its operating objective of making strategic and/or opportunistic investments primarily in the financial services industry.
Commenting on the acquisition, Westaim president and CEO Cameron MacDonald said, "This investment is consistent with our stated objective of growing book value per share at above average rates over the long-term."
Once the initial transaction is completed, the Westaim HIIG Limited Partnership will be entitled to nominate six directors to HIIG’s 10 person board of directors.
Image: Westaim agrees to purchase certain stake in Houston International Insurance. Photo courtesy of adamr/ FreeDigitalPhotos.net.