Platinum Ltd Announces Share Repurchase
Bermuda based Platinum Underwriters Holdings, Ltd. announced yesterday [Jan 18] that it repurchased 1,685,714 of its common shares for approximately $75.1 million during the three months ended December 31, 2010 and an additional 350,000 common shares for approximately $15.9 million during 2011.
Platinum also announced that it has entered into an agreement to purchase, for an aggregate of $47.9 million in cash, the options issued to RenaissanceRe Holdings Ltd. in connection with Platinum’s initial public offering in 2002. The RenaissanceRe Options had provided the right to purchase 2,500,000 common shares from Platinum for $27.00 per share and were subsequently amended to provide for net share settlements.
Michael D. Price, President and Chief Executive Officer of Platinum, said: “Under current soft market conditions, we believe active capital management is essential for creating shareholder value.”
The authorized amount remaining under Platinum’s share repurchase program will be approximately $115.5 million following the purchase of the RenaissanceRe Options, which is expected to be consummated on January 20, 2011. The RenaissanceRe Options will be canceled and the transaction will be recorded in the first quarter of 2011.
