07:13 AM EDT, 06/05/2024 (MT Newswires) -- Ambac Financial Group ( AMBC ) said Wednesday it has signed a definitive deal to sell its legacy financial guarantee businesses, Ambac Assurance and Ambac UK, to funds managed by Oaktree Capital Management for $420 million in cash.

In addition, Oaktree will receive warrants to acquire up to 9.9% of Ambac common shares at a strike price of $18.50 per share.

Ambac said it expects to close the sale in Q4 or Q1 2025, subject to regulatory approvals in the US and UK as well as Ambac shareholder approval.

Price: 18.05, Change: +0.82, Percent Change: +4.76