NYMagic Inc. (NYM) agreed to be acquired by ProSight Specialty
Insurance, which is backed by private-equity firm TPG Capital and
Goldman Sachs Group Inc.'s (GS) merchant banking unit, in a deal
valued at about $224 million.
NYMagic specializes in property-and-casualty insurance for the
marine industry and nonmarine liability insurance. ProSight is a
specialty P&C insurer.
Under the deal, NYMagic shareholders will receive $25.75 a
share, a 24% premium to Wednesday's closing price and comes as the
stock has gained 26% already this year. The stock briefly traded
above the offer value in the fall of 2008.
The buyout will be 100% equity financed by ProSight, and NYMagic
holders owning about 40% of the company's shares have agreed to
vote in favor of the deal.
The company in May reported first-quarter profit nearly doubled
on tax benefits while net premiums written earned rose 9%. The
company estimated its exposure from claims related to the explosion
of Transocean Ltd.'s (RIG) rig in the Gulf of Mexico at a loss of
slightly more than $1.2 million net of reinsurance.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com