MediaAlpha Closes Secondary Offering

Rhea-AI Summary

White Mountains Insurance Group, (NYSE: WTM) announced the closure of MediaAlpha, Inc.'s underwritten secondary public offering of 7,590,000 shares at $19.00 per share. White Mountains sold 5,000,200 shares, generating around $90 million. Following the offering, White Mountains holds 25% fully-diluted ownership of MediaAlpha. The offering did not involve MediaAlpha selling any shares, ensuring a substantial cash influx for White Mountains.

Positive

• White Mountains received approximately $90 million in net cash proceeds from the offering, strengthening its financial position.

• White Mountains now holds a 25% fully-diluted ownership interest in MediaAlpha, demonstrating a strong investment in the company.

Negative

• MediaAlpha did not sell any shares in the offering, potentially missing out on raising capital for its own operations or expansion.

• The underwriters' option to purchase additional shares indicates possible dilution of ownership for existing shareholders in the future.

HAMILTON, Bermuda, May 10, 2024 /PRNewswire/ -- White Mountains Insurance Group, Ltd. (NYSE: WTM) announced today that MediaAlpha, Inc. ("MediaAlpha") closed its previously announced underwritten secondary public offering of 7,590,000 shares (including 990,000 shares sold pursuant to the underwriters' option to purchase additional shares) of its Class A common stock by certain selling stockholders. The shares of Class A common stock were sold to the public at a price of $19.00 per share. MediaAlpha did not sell any shares of Class A common stock in the offering.

White Mountains sold 5,000,200 shares in the offering and received net cash proceeds of approximately $90 million from the offering.  Following the completion of the offering, White Mountains owns 17,856,614 shares of MediaAlpha Class A common stock, representing a 25% fully-diluted ownership interest. 

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.  Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act of 1933, as amended.

About White Mountains

White Mountains is a Bermuda-domiciled financial services holding company traded on the New York Stock Exchange under the symbol WTM and on the Bermuda Stock Exchange under the symbol WTM.BH.

CONTACT: Rob Seelig
 (603) 640-2212

View original content:https://www.prnewswire.com/news-releases/mediaalpha-closes-secondary-offering-302142335.html

SOURCE White Mountains Insurance Group, Ltd.

FAQ

How many shares were sold in MediaAlpha's secondary public offering?

MediaAlpha closed its underwritten secondary public offering by selling 7,590,000 shares at $19.00 per share.

What was the net cash proceeds White Mountains received from the offering?

White Mountains received approximately $90 million in net cash proceeds from the secondary public offering.

What is White Mountains' current ownership interest in MediaAlpha?

Following the offering, White Mountains holds a 25% fully-diluted ownership interest in MediaAlpha.