American Financial Group Inc. has priced the common stock offering of nearly 12.4 million shares of Infinity Property and Casualty Corp. at $16 per share. In addition, the Cincinnati, Ohio-based property/casualty insurer has granted the underwriters an over-allotment option to purchase an additional 1.8 million shares at the offering price.
Infinity’s common stock has been approved for listing on the Nasdaq National Market under the symbol “IPCC.” AFG will own approximately 30 percent of Infinity after the offering, assuming the underwriters’ over-allotment option is exercised. The closing of the offering is expected to occur Feb. 18, 2003.
Assuming the underwriters’ over-allotment option is exercised, AFG will receive proceeds of approximately $215 million from this common stock offering and expects to report an after-tax loss of about $30 million in the 2003 first quarter in connection with the transaction. Infinity has also filed a registration statement relating to a debt offering with the Securities and Exchange Commission but it has not yet become effective.
Upon completion of the debt offering, AFG expects to receive $55 million from Infinity as repayment of a promissory note. The securities in the debt offering may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective.
Topics Mergers & Acquisitions
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