NEW YORK (AP) -- Shares of insurance company SeaBright Holdings Inc. jumped on Tuesday after it said it agreed to be bought by Enstar Group Ltd. for $252 million.
THE SPARK: Late Monday, Enstar, a Bermuda company that buys and manages insurance and reinsurance companies, said it agreed to buy SeaBright for $11.11 per share. That is a 34 percent premium over the stock's closing price Monday of $8.27. SeaBright needs to get the approval of its stockholders at a special meeting held later this year before the deal can be complete. If Enstar receives financing for the deal, it is expected to close in the first quarter of 2013.
THE BIG PICTURE: The move helps Enstar expand in the U.S. SeaBright said the agreement follows a period of considering all strategic options.
SHARE ACTION: SeaBright shares rose $2.68, or 32.4 percent, to $10.95 during afternoon trading. Prior to the news the stock had been up about 8 percent since the beginning of the year. Enstar shares slipped 45 cents to $94.30.