Kingsway Financial Services Inc. says it has agreed to sell its shares of Jevco Insurance Co. to Westaim Corp. of Calgary.
The total estimated dollar-value of the transaction wasn’t disclosed in Monday’s announcement but Kingsway said it would receive 94.5 per cent of Jevco’s book value as of Dec. 31, subject to adjustments.
In addition, prior to closing the sale, Kingsway would receive a $40-million dividend from Jevco.
The deal requires approval from the Minister of Finance and Westaim shareholders.
Westaim’s primary asset currently is its 75 per cent interest in Nucryst Pharmaceuticals Corp. (TSX:NCS).
Based in Mississauga, Kingsway operates through a number of subsidiaries in the United States and Canada. Jevco is a federally regulated property and casualty insurance company
Kingsway said it has conditional agreements to repurchase about $47-million (U.S.) of its outstanding debt if the Jevco deal is completed successfully.