The Western Investment Company of Canada Limited (Western) has completed a series of transactions that will reposition the company to focus primarily on property and casualty insurance and investment management. The announcement follows the resolutions passed at its Annual General and Special Meeting of Shareholders on December 6, 2024.
The completed transactions include a significant private placement, the acquisition of new portfolio companies, and the appointment of a refreshed board of directors with expertise in the Canadian property and casualty insurance industry.
On August 30, 2024, Western announced a private placement, later upsized to $30 million, which has now closed with gross proceeds of $28.9 million. An additional $1.1 million is expected to close by December 31, 2024.
The private placement, which saw significant investment from Tevir Capital Corp. and other partners, is part of Western’s strategy to expand its footprint in the insurance sector. The proceeds will primarily be used for acquiring additional portfolio companies in the insurance industry and for general corporate purposes, including the planned full acquisition of Fortress Insurance Company by December 31, 2024.
“We have been working diligently over the past year to combine the insurance expertise at Western and Fortress with the value investing philosophy at Tevir,” said Paul Rivett, president and chief executive officer of Western. “The series of transactions that have taken place since August 30 have culminated in bringing together these two teams with a common long-term goal to compound Western’s book value per share over the long term.”
In addition to the private placement, Western raised $6.3 million through a rights offering, which saw the exercise of 15.7 million rights. New investors, including Thermo Companies, have shown strong support for Western’s new direction.
Thermo’s Kyle Pickens praised the company’s leadership, stating, “We believe we have found such an opportunity with Western and Fortress Insurance. The team that Paul and Scott have assembled both at the management and board level is incredibly compelling.”
As part of the strategic realignment, Western has appointed Rivett as its new president and chief executive officer. Rivett’s leadership will be further supported by the addition of Greg Morrison, former CEO and director of Trisura, who brings over 40 years of experience in Canada’s property and casualty insurance industry. The new board also includes Naim Ali, Robert Cihra, Dr. Kabir Jivraj, and Sharon Ranson.
“Western has been able to attract a team of experienced leaders from Canada’s property and casualty insurance industry to refresh its Board,” said Scott Tannas, chairman of Western’s Board. “We are very much looking forward to Western’s story unfolding as this management team and Board look to replicate and surmount the success they have already enjoyed to date.”
The closing of the private placement also marked the completion of a transaction with Tevir Capital, which included an investment management agreement and the investment of $5 million. This strategic partnership is expected to strengthen Western’s long-term growth potential by combining insurance expertise with Tevir’s value investing philosophy.
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