Bermudian-based insurer Enstar Group Limited has agreed to repurchase 1,597,712 non-voting convertible ordinary shares of Enstar held by Canada Pension Plan Investment Board for a price of $213.13 per share, totalling $341 million in aggregate.

The company said that represents a five per cent discount to the trailing 10-day volume weighted average price of Enstar's voting ordinary shares as of the close of business on March 22, and a 13 per cent discount to Enstar’s book value per ordinary share as of the end of 2022.

The shares comprise all of Enstar’s outstanding non-voting ordinary shares. The transaction is scheduled to close on Tuesday.

Following the transaction, CPP Investments will hold 9.4 per cent of Enstar’s outstanding voting ordinary shares and CPP Investments’ director representative will remain on the Enstar board.

CPPIB Epsilon Ontario Limited Partnership will continue to hold 4.6 per cent of Enstar’s outstanding voting ordinary shares.

Dominic Silvester, Enstar’s chief executive officer, said: “The transaction with CPP Investments is a compelling opportunity for Enstar to leverage its strong capital and liquidity position to execute an accretive share buyback that simplifies our share capital structure.

“Following completion of the share repurchase, Enstar will remain well-positioned to take advantage of a healthy transaction pipeline. We are pleased that CPP Investments will maintain a significant interest in Enstar, and we appreciate the value they add.”