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AVI Global Trust PLC on Wednesday sharply criticised Third Point Investors Ltd’s proposed merger with Malibu Life Reinsurance SPC, calling the deal a ‘governance horror-show’ and vowing to vote against the transaction. The Exeter, England-based $1.3 billion trust, managed by Asset Value Investors, holds a 7.1% stake in Third Point and has been a long-term critic of its governance and performance. AVI issued a sharp response hours after Third Point announced plans to acquire Malibu Life, a Cayman Islands-based annuity reinsurer owned by its US parent. ‘Third Point Investors has for some time been the poster child for appalling corporate governance, and today’s announcement of an egregious related-party deal thoroughly cements that well-deserved reputation,’ AVI said. It cited years of underperformance and described the move as dragging shareholders into another ‘costly misadventure’ in insurance, referencing the modest returns of predecessor venture Third Point Reinsurance. The proposed deal would see Third Point Investors acquire Malibu from Third Point Opportunities Master Fund LP - both entities connected to Third Point founder Dan Loeb - in an all-share, net asset value-for-NAV transaction. The deal was unanimously recommended by Third Point’s strategy committee and aims to transform the London-listed feeder fund into a reinsurance operating company targeting the fast-growing US annuity market. However, AVI said it was disappointed that shareholders are not being offered a full exit at NAV. Compounding its objections, AVI noted that the chair of the strategy committee recommending the transaction is slated to chair the new combined entity. ‘We’ll be voting against this proposal and urge other shareholders to do likewise,’ AVI concluded. Third Point Investors said it plans to launch a $75 million tender offer to provide liquidity for exiting shareholders. It also expects to convene an extraordinary general meeting to seek approval, with the deal constituting a reverse takeover under UK listing rules. Shares in AVI Global Trust PLC were 0.5% down at 232.83 pence on Thursday morning in London. Third Point Investors fell 1.6% to $24.10. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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