Scottish Re Group Ltd. plans to hold a shareholder vote June 8 on a proposal that calls for the controlling shareholders to pay about $21 million to buy out the company’s remaining ordinary shareholders.
Scottish Re, Hamilton, Bermuda (Pink Sheets:SKRRF.pk), is a company that once operated a large life reinsurance business but later ran into problems with claims rates and investment performance.
Affiliates of Cerberus Capital Management L.P., New York, and Massachusetts Mutual Life Insurance Company, Springfield, Mass., now control Scottish Re.
The controlling shareholders said April 15 they would pay the non-affiliated shareholders a price of 30 cents per share for their stock; the stock had been selling for about 16 cents per share before Scottish Re announced the deal.
The controlling shareholders need approval from “disinterested directors” to proceed with the deal. The company has set up a special committee of disinterested board members to consider the proposal.
The company will hold the general meeting at a hotel in Hamilton.
May 4 will be the record date for determining whether shareholders are entitled to notice of the meeting and entitled to vote at the meeting, the company says.
- Allison Bell