HedgeCo.net – Alternative asset manager Fortress Investment Group has announced plans to buy up re-insurance company Alea Group Holdings for £162 million. ($319.6 million)

“The independent directors are pleased to recommend the acquisition, which results from the strategy that management have pursued over recent months to bring greater stability to the company,” Chairman of Alea, John Reeve said in a statement.

Alea put itself up for sale in 2005 following $0.8 million in record storm losses in 2005, down from $178.9 million the year before. Net premium revenue fell to $215.9 million from $1.087 billion due to a decision to cease writing new business.

Fortress said it would pay 93 pence a share in cash, 1.1% less than Alea’s closing price Tuesday but a 15% premium over its average price for the past six months. That would value the offer at $320 million.

Fortress Investment Group is a global hedge fund investor with over $30 billion in assets. Headquartered in New York the company has affiliates with offices in Dallas, Frankfurt, Geneva, HongKong, London, Los Angeles, Rome, San Diego, Sydney and Toronto. Fortress raises, invests and manages private equity funds, hedge funds and publicly traded alternative investment vehicles.

Alex Akesson
Contributing Writer
HedgeCo.Net
Email: Editor@hedgeco.net