11:24 AM EDT, 07/29/2024 (MT Newswires) -- Enstar Group ( ESGR ) agreed to be taken private by a Sixth Street-led consortium in a $5.1 billion deal.

Liberty Strategic Capital, JC Flowers and other institutional investors will also be participating in the transaction, according to a statement released Monday. The per-cash consideration of $338 represents a premium of about 8.5% to the insurer's 90-day average share price as of Friday.

Shares of Enstar ( ESGR ) fell 6.4% in midday trade.

"This transaction provides a full liquidity event for shareholders and is a testament to the strength of our team," Enstar ( ESGR ) Chief Executive Dominic Silvester said in a statement. "We believe this is the best next step for our shareholders and we look forward to this exciting new chapter."

The insurance company agreed to return roughly $500 million from its balance sheet to its shareholders as part of the total cash consideration.

"Enstar ( ESGR ) has a proven track record of delivering innovative legacy (property and casualty) solutions and capitalizing on attractive opportunities in the reinsurance market, while maintaining a conservative balance sheet and strong risk management culture," Sixth Street Partner Michael Muscolino said.

The deal is expected to close in mid-2025, subject to approvals by regulators and Enstar's ( ESGR ) shareholders. At completion, Enstar ( ESGR ) will become a private company. Enstar's ( ESGR ) board has a 35-day go-shop period, allowing it to solicit alternative acquisition proposals.

Separately, Enstar ( ESGR ) reported second-quarter revenue of $236 million, up from $154 million the year earlier. Earnings per share jumped to $8.49 for the three months ended June 30 from $1.34.

Enstar ( ESGR ) said President Orla Gregory will step down at the end of the year.

Price: 325.99, Change: -22.33, Percent Change: -6.41