Allied World shareholders advance Fairfax merger with affirmative vote on two proposals

Allied World Assurance Company Holdings AG recently announced that its shareholders voted to approve two proposals connected to the company’s merger with Fairfax Financial Holdings Limited.

Allied World shareholders voted on the proposals at a special shareholder meeting called to advance the merger.

“We are pleased with the overwhelming support we received today from our shareholders,” Allied World President and CEO Scott Carmilani said. “With today’s vote, we move one step closer to completing the transaction with Fairfax, to the benefit of our shareholders, customers, business partners and employees.”

The first proposal amends the company’s articles of association so that those holding 10 percent or more of the company’s ordinary shares no longer have any limitations on their voting rights. The second proposal will provide holders of the company’s outstanding ordinary shares with a $5 payment per ordinary share. This payment will occur after a subsidiary of Fairfax acquires all of the company’s outstanding ordinary shares, though the payment will go only to those who held ordinary shares before that transaction. Those receiving payments will forgo the $0.26 quarterly dividend.