(By Balaseshan) Validus Holdings Ltd. (NYSE: VR), a provider of reinsurance and insurance, said it has received all regulatory approvals required to close the acquisition of Flagstone Reinsurance Holdings SA (NYSE: FSR).
Earlier on Wednesday, the shareholders of Flagstone have approved all matters required to be approved by Flagstone's shareholders in order for Validus to acquire Flagstone, with the support of more than 99% of the shares voted at the meeting.
Validus expects to complete the acquisition prior to the open of trading on the New York Stock Exchange on November 30, subject to the satisfaction of customary conditions to closing.
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On August 30, Validus said it has agreed to buy Flagstone Reinsurance for $623.2 million in cash and stock. Flagstone shareholders will receive 0.1935 of a Validus voting share and $2 in cash for each Flagstone share.
The combined company would maintain Validus' name, headquarters and executive management.
"This is a compelling transaction for us that allows Validus to further build upon our market leading position in catastrophe risk. Flagstone brings a strong client base that will add scale to our business," Validus' Chief Executive Ed Noonan told in a statement on August 30.
Validus provides reinsurance coverage in the property, marine and specialty lines markets and insurance coverage in the same markets. The company conducts its operations worldwide through two subsidiaries, Validus Reinsurance Ltd. and Talbot Holdings Ltd.
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VR is trading up 0.20% at $34.64 on Wednesday, while FSR trades up 0.23% at $8.68.