Shearman & Sterling is advising Fairfax Financial Holdings Limited on its proposed acquisition of Allied World Assurance Company Holdings, AG. Fairfax is a holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and investment management. Allied World, through its subsidiaries and brand known as Allied World, is a global provider of innovative property, casualty and specialty insurance and reinsurance solutions.
Under the terms of the agreement, Allied World shareholders will receive a combination of Fairfax shares and cash equal to $54.00 per Allied World share, for a total equity value of approximately $4.9 billion. The $54.00 per share offer price represents a premium of 18% to the closing price of $45.77 per Allied World share on December 16, 2016. The transaction has been unanimously approved by the boards of directors of both companies.
The combination of Fairfax and Allied World creates a world leader in property and casualty insurance, reinsurance and investments. The deal is expected to be completed in the second quarter of 2017, subject to customary closing conditions.