SkyNews: Omega Set For Byrne Battle
Omega Insurance faces a battle to force Bermuda-based re/insurance tycoon Mark Byrne to honour a deal to pay £50 million to become its second-largest shareholder, Britain’s SkyNews says today [Nov. 30].
The British TV network’s business editor Mark Kleinman reports Haverford, the Bermuda vehicle controlled by Mr. Byrne, today tabled a fixed-price offer of 74 pence-a-share for 25 percent of Omega, one of the largest insurers in the Lloyd’s of London market.
“The bid replaces a proposal for a tender offer worth between 70 pence and 83 pence-a-share which was made by Haverford in September,” said Mr. Kleinman. “I understand that Haverford has told shareholders as well as Omega’s board that its offer was lapsed if they fail to accept it by Friday morning.
“What’s unclear, as I said earlier in the week, is whether Haverford will be able to walk away if its new offer is rejected. It has sharply reduced its offer for the Omega stake in the wake of a trading update which saw the Lloyd’s syndicate’s net asset value fall from 84p-a-share to 75p-a-share.”
Mr. Byrne co-founded Flagstone Reinsurance Holdings in Bermuda in 2005 but stepped down from its board and as a company executive last year in order to pursue new ventures.
In a statement issued on Tuesday [Nov. 29], Omega said: “In any event, as far as the Omega Board is aware, none of the conditions of the Offer has been breached and there has been no assertion from Haverford Bermyda Ltd. [HBL] of any breach. The Offer is available for acceptance until 1.00 p.m. [London Time] on 30 November 2011.
“The Omega Board knows of no reason why, if the minimum level of tenders is achieved, the Offer would lapse and considers that, per the Offer Document, if the remaining conditions were fulfilled by midnight on the 21st day following the Closing Date, the Offer would become unconditional in all respects.
“The Omega Board will engage with HBL in order to clarify HBL’s position in relation to the Offer and will make further announcements as appropriate.”
Mr. Kleinman said if Haverford’s revised offer is successful, Mr. Byrne would become Omega’s chairman.
“It’s questionable whether his approach is endearing him to Omega’s other shareholders,” he commented.
Haverford and Omega both declined to comment on the revised bid for the Omega stake when contacted by SkyNews.
