Kingsway Signs Off on Jevco Sale

Kingsway Financial Services has agreed to sell outstanding shares of Jevco Insurance Company to a Toronto investment specialist.

Pending government approval, The Westaim Corporation will buy all of Jevco’s issued and outstanding shares for an aggregate purchase price of 94.5% of Jevco’s book value, Kingsway announced January 25. The sale will also net Kingsway a dividend of up to $40 million (CDN) from Jevco, which is subject to insurance regulatory approval

The sale is also subject to standard closing conditions.

“If successfully concluded, [Kingsway] plans to immediately purchase sufficient company debt to ensure it continues to satisfy all financial covenants contained in bond agreements to which the company and its affiliates are a party,” a Kingsway statement notes.  “Conditional debt repurchase agreements have been executed in respect of approximately US$47 million of the company's debt to ensure the timely completion of the debt purchase transactions.”