Insurance holding company Ambac has extended from July 3, 2025, to December 31, 2025 the term of the stock purchase agreement relating to the sale of its legacy financial guarantee businesses -Ambac Assurance Corporation (AAC) and Ambac UK (AUK) – to funds managed by Oaktree Capital Management, L.P. for $420 million in cash.
The cash sale of AAC and AUK to Oaktree was initially announced in early June 2024. Later in the month, the company provided an update on the timing of the sale with a hearing expected to take place in the third quarter of the year.
In April 2025, Ambac announced that it had met all necessary pre-closing conditions under the purchase agreement.
Ambac and Oaktree have reaffirmed their commitment to closing the transaction, according to a recent announcement. Oaktree is actively collaborating with the Wisconsin Office of the Commissioner of Insurance (OCI) to meet outstanding closing conditions and secure final regulatory approval.
“We continue to await final regulatory approval for this strategic transaction and remain aligned with Oaktree and confident in completing the sale,” said Claude LeBlanc, President and CEO of Ambac. “This transaction remains the capstone to our transformation into a pure-play specialty P&C insurance platform, and we look forward to closing it as soon as practicable.”
“Oaktree has been actively working towards, and is committed to, obtaining the final regulatory approval from the OCI to close on the acquisition of AAC and AUK,” said Oaktree Managing Director Greg Share. “We look forward to closing this transaction once such approval is received.”
In addition to the extension, Ambac and Oaktree have agreed to a conversion right for the warrant to purchase Ambac common stock that Oaktree is receiving at the closing of the transaction.
Ambac and Oaktree have also agreed to arrangements regarding Ambac’s current lease obligations and the handling of certain expenses allocated to AAC before the transaction’s closure.
Full details of the amendment will be disclosed in a Current Report on Form 8-K to be filed by Ambac with the U.S. Securities and Exchange Commission (SEC).
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