July 29 (Reuters) - Investment firm Sixth Street will

acquire Enstar ( ESGR ) for $5.1 billion, in a deal backed by

former Treasury Secretary Steven Mnuchin and billionaire J

Christopher Flowers, the insurer said on Monday.

The deal will allow Sixth Street, an existing Enstar ( ESGR )

investor with a nearly 4.7% stake, to gain a foothold in the

property and casualty insurance market.

Enstar ( ESGR ) shareholders will receive $338 per share in cash, a

nearly 3% discount to the stock's last closing price on Friday.

The insurer's shares fell nearly 5% before the bell.

Mnuchin's Liberty Strategic Capital, J.C. Flowers and other

institutional investors have also agreed to participate in the

deal, which is expected to close in mid-2025, Enstar ( ESGR ) said.

Enstar ( ESGR ) is allowed a 35-day "go-shop" period, expiring on

Sept. 2, in which it can seek alternative acquisition offers.

Goldman is advising Enstar ( ESGR ), while Ardea Partners, Barclays

and J.P. Morgan Securities are the advisers to Sixth Street.

Sixth Street manages more than $75 billion of assets and has

invested in businesses ranging from Airbnb ( ABNB ) to Bay FC, a

professional women's soccer franchise.