Sixth Street Bags Enstar – Merger Arbitrage Mondays

Enstar Group Limited. (ESGR): $326.91

Market Cap: $4.97 B

Deal Size: $5.1 B

Among the four new deals announced this week, investment firm Sixth Street’s acquisition of Enstar Group for about $5.1 billion caught our attention because of Steven Mnuchin’s involvement.

According to the terms of the agreement, Sixth Street, which already owns about 4% of the insurer, will pay Enstar shareholders $338.00 in cash per ordinary share, representing a 2.96% discount from the stock’s last closing price, and a 5.5% premium over the 30-day average price. The shares dropped 6.1% to $327.17, after the announcement of the discounted price. Former Treasury Secretary Steven Mnuchin and billionaire J. Christopher Flowers back the deal.

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