Ambac gets shareholder approval for sale of legacy financial guarantee businesses

Ambac Financial Group, the insurance holding company, has announced that its shareholders have voted to approve the proposed purchase agreement under which funds managed by Oaktree Capital Management LP will acquire its legacy financial guaranty businesses: Ambac Assurance Corporation and Ambac Assurance UK Limited.

The deal was first announced in June 2024, where we reported that Ambac had signed a definitive agreement to sell these businesses to Oaktree for $420 million in cash.

Based on the final vote count from a recently held Special Meeting, Ambac has received the requisite approval from holders of a majority of the total outstanding shares of its common stock as of the record date, with approximately 95% of the votes cast approving the sale proposal.

According to the announcement, Ambac will file the final vote results, as certified by the independent inspector of election, on a Form 8-K with the U.S. Securities and Exchange Commission.

In addition, the transaction is expected to close either in the fourth quarter of 2024, or the first quarter of 2025, subject to receiving U.S. and U.K. regulatory approval, as well as other customary closing conditions.

It was also confirmed that Moelis & Company LLC served as exclusive financial advisor and Debevoise & Plimpton LLP provided legal counsel to Ambac.

Ambac President and Chief Executive Officer Claude LeBlanc, commented: “We are pleased to reach this important milestone towards the completion of the Sale and thank our shareholders for their overwhelming support.”

Adding: “The Sale represents a meaningful step in a robust and thorough process to maximize the value of our legacy financial guarantee insurance business and enable us to achieve our strategy to transform Ambac into a specialty property and casualty insurance platform. We look forward to finalizing the transaction upon regulatory approval.”

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