RICHMOND, Va. (AP) — The insurance company Markel is buying Alterra Capital in a cash-and-stock deal worth nearly $3 billion
Markel Vice Chairman Steven Markel said Wednesday that Alterra's reinsurance and large account insurance portfolios will help to diversify the company.
Alterra Capital Holdings Ltd. stockholders will receive $10 per share and will have the right to receive 0.04315 Markel common shares for each Alterra share they own. Markel said that this will give Alterra stockholders $31 per share, which is a 34 percent premium to the company's Tuesday closing price of $23.15. Alterra currently has about 96 million outstanding shares, according to FactSet.
The companies value the transaction at about $3.13 billion.
Alterra's stock hit a new 52-week high of $29.59.