Montpelier says consideration for the transaction will reflect MUSIC’s net asset value at closing and will be payable in cash. Based on MUSIC’s net asset value at June 30, 2011, the transaction is valued at about $55 million and is expected to result in an increase to Montpelier’s current tangible book value per common share of about $0.24.
The transaction, which is subject to regulatory approvals and certain customary closing conditions, is expected to close in the fourth quarter of 2011, says Montpelier.