Enstar: No Cracks Showing Yet In Sixth Street Take-Out
Source: SeekingAlpha
2025-03-31 16:40:46 ET
Summary
- Enstar accepted a private take-out offer from Sixth Street, subject to shareholder approval, with potential implications for common and preferred shareholders.
- The transaction involves creating new entities and merging them, leaving a surviving entity with new common and existing preferred shareholders.
- Preferred shareholders face risks, including potential dividend cuts, especially if Enstar's legacy reinsurance reserves show negative development.
- I rate ESGR as a hold but recommend selling ESGRO and ESGRP due to higher dividend cut risks in a private structure.
Enstar Group Limited ( ESRG ) is a Specialty Run-Off Reinsurance company operating in the Property & Casualty legacy space....
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Enstar: No Cracks Showing Yet In Sixth Street Take-Out
Enstar Group Limited Depositary Shares Each Representing 1/1000th of an interest in Preference Shares
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