BF&M concludes relationship with BFMIC
19 April, 2006
John Wight, President & CEO of BF&M Limited, today announced an agreement between BF&M Limited (“BF&M”) and The Bermuda Fire & Marine Insurance Company Limited (in liquidation) (“BFMIC”) whereby BF&M will acquire all shares currently owned by and all options held by BFMIC in BF&M, on 8th May 2006.
“Existing contractual agreements were in place to purchase for cancellation the 352,038 shares owned by BFMIC in BF&M on 31st December 2006 and to permit BF&M to call any and all of the 550,000 options that BFMIC were entitled to exercise up to 31st December 2006, however both parties agreed to bring forward the conclusion of these agreements to 8th May 2006.”
The price to be paid by BF&M to acquire the options will be 550,000 times 115% of the weighted average closing price of a BF&M share on the Bermuda Stock Exchange over the period one hundred and eighty days immediately prior to 28th April 2006, minus 550,000 times the exercise price of $11.27.
The price to be paid by BF&M for the shares will be 352,038 times 110% of the weighted average closing price of a BF&M share on the Bermuda Stock Exchange over the period one hundred and eighty days immediately prior to 1st May 2006 plus $147,856, except that the determination of the weighted average closing price shall also assume that there was a trade of 550,000 common shares exercised on the options on 28th April 2006 at a per share price of 115% of the weighted average closing price of a BF&M share over the period one hundred and eighty days immediately prior to 28th April 2006.
Mr. Wight added that this is very positive news for the Company as it accelerates the timetable for acquiring the shares currently owned in BF&M by BFMIC and options held, from 31st December 2006 to 8th May 2006 and once and for all brings finality to BFMIC’s ownership interest in BF&M as a result of the 30th November 1999 agreement between the two parties. “We are delighted to bring this issue to a conclusion on terms that are attractive to the Company. Following our strong 2005 financial results released recently, the signing of this agreement with BFMIC is more positive news for our shareholders.”
ABOUT BF&M INSURANCE GROUP
BF&M Limited is the holding company of the BF&M Insurance Group. The two largest operating companies within the Group are BF&M Life Insurance Company Limited, a leading provider of life, health and pensions products, and BF&M General Insurance Company Limited, the leading general insurer providing all forms of property, casualty, motor and marine products. The group includes several other companies including BF&M Investment Services, Marchmont Insurance Company Limited, Bermuda International Insurance Company Limited, Hamilton Financial Limited, and BF&M Properties Limited, (including Scarborough Property Holdings Limited and Barr’s Bay Properties Limited)
For further information contact :-
R. John Wight C.A., President & Chief Executive Officer
Phone 295-5566 Fax 292-8831 e-mail email@example.com