PEMBROKE, Bermuda - Maiden Holdings , Ltd. (NASDAQ: NASDAQ:MHLD), a Bermuda-based holding company with a market capitalization of $138.2 million, announced the sale of its Swedish subsidiaries, Maiden General Försäkrings and Maiden Life Försäkrings, to a London-based consortium of insurance and reinsurance companies. According to InvestingPro data, the company's shares are currently trading below their Fair Value, suggesting potential upside opportunity. The terms of the deal, which include an all-cash transaction, were not disclosed, but the agreement is subject to customary regulatory approvals.
According to Patrick J. Haveron, Maiden's CEO, the sale of these subsidiaries marks the end of their tenure with Maiden, which began with the acquisition of the International Insurance Services platform in 2010. Haveron noted that the International Insurance Services platform has been profitable and well-managed, and the sale aligns with Maiden's strategic shift towards less capital-intensive, fee-oriented endeavors. The divestiture is expected to reduce Maiden's operating expenses by nearly 20%. InvestingPro analysis reveals the company has maintained strong liquidity with a current ratio of 6.89, though it faces challenges with negative gross profit margins. InvestingPro subscribers can access 6 additional key insights about MHLD's financial health and performance metrics.
The agreement ensures that all existing staff and independent directors of Maiden General and Maiden Life will continue their roles under the new ownership. This move is seen as beneficial for both parties, offering the subsidiaries an opportunity for growth under a more locally focused ownership group. Despite recent challenges, including a 31.86% decline in share price over the past six months, the company has demonstrated revenue growth of 20.8% in the last twelve months.
Maiden Holdings was advised by Hines Associates, a financial services corporate finance firm with experience in the European insurance market. This transaction is part of Maiden's broader strategy to manage and allocate assets and capital within the insurance and related financial services industries.
The sale's completion will see Maiden Holdings continue to focus on its core business strategy, leveraging its expertise in the insurance market to create shareholder value. This information is based on a press release statement from Maiden Holdings, Ltd.
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