Wilbur Ross, the famed distressed-asset investor, agreed to buy 6.9 million shares of
for $100 million, the insurer said Thursday.
The shares are newly issued by the company and were sold to Ross's WL Ross & Co. in a privately negotiated transaction. Half of the deal is expected to close on June 1, with the other half due to close on receipt of antitrust clearance from the U.S. government.
Montpelier, whose shares have fallen by roughly half since last year's Gulf Coast hurricanes forced it to beef up loss reserves, will have about 96 million shares outstanding after selling the stock to Ross. Ross's company will own about 7% of the company. Ross will also get a board seat, filling an existing vacancy, the company said.
In Thursday trading, Montpelier's shares jumped 64 cent, or 4.4%, to $15.17.