EMC proposes to privatize the company

The offer, which would take EMC from a public stock company to a private company, represents a premium of 26% over EMCI’s closing share price on November 14 and a premium of nearly 13% relative to book value per EMCI share, the company said in a Press release.

EMCC currently owns approximately 55% of the outstanding common shares of EMCI. EMCI has been listed on the stock exchange since 1982.

The proposed transaction would be structured as a merger of a wholly owned subsidiary of EMCC to be created with and into EMCI, such that EMCI would become a wholly owned subsidiary of EMCC.

“EMCC believes that the proposed transaction is in the best interests of EMCI’s public shareholders,” the company said in the statement. “Given the relatively limited market trading volume and illiquidity of EMCI’s shares, EMCC believes that the transaction will provide EMCI’s public shareholders with immediate and comprehensive liquidity at a significant premium to the current share price. EMCI’s share.”

Employers Mutual Casualty expects a special committee of independent directors from EMCI’s board of directors to be formed to review the proposed transaction.

In a letter to shareholders, EMCC said it plans to fund the stock purchase with a combination of cash and existing credit resources, which could include the issuance of excess notes and/or a loan from Federal Home Loan Bank.

“Given our strong financial position and our excellent credit rating, we are very confident in our ability to obtain such financing and we do not plan to subject our proposed transaction to a condition of financing,” the company said. in the letter.