Hedge Fund Manager Daniel S. Loeb has agreed he will not make further attempts to take SiriusPoint private for two more years.
SiriusPoint and Loeb, who has about a 9.5% shareholding in the Bermuda-based specialty insurer and reinsurer, have entered a standstill agreement whereby Loeb will not make a takeover or purchase proposal or acquire more than 9.5% of the outstanding shares until at least July 2025.
In April this year, Loeb surprised SiriusPoint with an announcement he was looking to take the company private. A month later, the deal was scrapped when the parties were unable to agree on a deal value.
However, there were ongoing uncertainties about Loeb’s intentions for SiriusPoint and the standstill agreement will provide the company and its employees with stability as Chief Executive Officer Scott Egan continues to implement long-term turnaround plans without having to worry about a looming takeover, according to a source close to the company.
The standstill agreement stipulates that Loeb would not take any action in support of, or make any proposal with respect to controlling, changing or influencing the company’s management, business, capitalization or corporate structure.
“We welcome the standstill agreement as a strong signal of support for the progress we are making towards creating long term value in our business and for our shareholders,” commented Egan in a statement. “Our recent half year results were an important evidence point of our strategy and our progress so far, and we are focused on building on that momentum. I would like to take this opportunity to thank our employees, business partners, and customers for their continued support.”
SiriusPoint is the product of a merger between Third Point Re and Sirius International Insurance Group in February 2021. One of SiriusPoint’s predecessor companies, Third Point Re, was incorporated in October 2011 with the backing of Loeb’s hedge fund Third Point LLC.
Related:
Was this article valuable?
Here are more articles you may enjoy.
Warren Buffett’s Bet on Mild Florida Storm Season Faces Test With Hurricane Idalia 
Unusually Warm Atlantic Ocean Is Supercharging Hurricane Idalia 
Kansas’ MutualAid eXchange Declared Insolvent, Placed into Liquidation 
Montana Brokerage Owner Admits to Defrauding Customers 
