Canadian Underwriter

Kingsway aims to buy another U.S. insurer

February 27, 2002   by Canadian Underwriter

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In keeping with the recent success of its U.S. acquisitions, Mississauga-based Kingsway Financial Services (TSE, NYSE: KFS) is making an offer on American Country Holdings Inc.
Kingsway, which owns several subsidiaries in the U.S. and Canada, is offering US$2.10 per share of common stock, US$12 for preferred stock and US$0.175 per class A common stock purchase warrants for all issued and outstanding shares in the company. There are about 9.6 million common shares and 305,000 preferred shares outstanding, and Kingsway already owns about 555,500 common shares and 100,000 preferred shares in the company.
“Although the Board of American Country has not approved this offer or otherwise commented on it as of this date, we believe that the offer represents full and fair value to the American Country shareholders and encourage American Country shareholders to tender into the offer”, says Kingsway CEO Bill Star.
The offer represents a 52% premium on common shares, based on the price on NASDAQ’a Small Cap Market on February 19.
The deal is contingent on Kingsway obtaining a majority of the shares, as well as regulatory approval.

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