Tower Group International Ltd is to merge with fellow Bermuda company ACP Re Ltd.

Tower expects the transaction to close by summer this year.

A Tower statement said ACP Re is expected to merge “with and into” Tower, “ ... with Tower as the surviving corporation in the merger and a wholly owned subsidiary of ACP Re.”

Tower explained that ACP Re is a Bermuda based reinsurance company, and its controlling shareholder is a trust established by the founder of AmTrust Financial Services, Inc, National General Holdings Corporation and Maiden Holdings, Ltd.

Tower Group is a Bermuda-based global diversified insurance and reinsurance holding company with insurance and reinsurance subsidiaries in the US and Bermuda, in the commercial, personal and specialty insurance products and services markets.

It said: “Pursuant to the terms of the merger agreement, at the effective time of the merger, each outstanding share of Tower’s common stock, par value $0.01 per share, following the settlement of all outstanding equity awards, will be converted into the right to receive $3.00 in cash, with an aggregate value of approximately $172.1 million.”

According to the press release, the merger agreement was unanimously approved by both boards of directors. The conditions of the merger include the approval of Tower’s shareholders as well as governmental approvals. “The transaction is also conditioned on holders of not more than 15 percent of Tower’s common stock dissenting to the merger,” stated the press release.

Useful website: www.twrgrpintl.com