The shareholders that control Scottish Re Group Ltd. say they have succeeded at buying out most of the life reinsurer’s remaining ordinary shareholders.
SRGL Acquisition L.D.C., an affiliate of Cerberus Capital Management L.P., New York, and Massachusetts Mutual Life Insurance Company, Springfield, Mass., has merged with Scottish Re, Hamilton, Bermuda (Pink Sheets:SKRRF).
“With the completion of the merger, all outstanding voting shares of the company are now owned by the investors,” Scottish Re says.
All existing Scottish Re ordinary shares have been canceled, and the investors will be paying the holders of record 30 cents per ordinary share, Scottish Re says.
BNY Mellon Shareowner Services, a unit of the Bank of New York Mellon Corp., New York, is running the shareholder payment process.
Scottish Re shares were selling for about 16 cents each before the controlling shareholders announced the buyout and are now selling for 29.2 cents.
Scottish Re once operated a large life reinsurance business. It later ran into problems with claims rates and investment performance. The company stopped selling new business in 2008, and it started 2008 with fewer than 300 holders of its securities.
The company’s stock was delisted from the New York Stock Exchange in April 2008.
The controlling shareholders announced plans to fold the company into a subsidiary and pay $21 million to buy out the remaining ordinary shareholders in April. The ordinary shareholders approved the proposal in June.
Shareholders who have exercised dissenters’ rights are not eligible to get the 30-cent-per-share payment. The number of dissenters was not immediately available.
CORRECTION: An earlier version of this article described the SRGL-Scottish Re transaction incorrectly. All ordinary shares have been canceled, and the investors are now starting to buy out the ordinary shareholders.