MediaAlpha Prices Secondary Offering

Rhea-AI Summary

White Mountains Insurance Group (NYSE: WTM) announced a secondary offering of 7,000,000 shares of MediaAlpha, priced at $46 per share. White Mountains is selling 3,122,460 shares, retaining a 27% stake in MediaAlpha, valued at approximately $800 million. The offering is expected to close on March 23, 2021, with net proceeds of about $140 million to White Mountains. The underwriters will have a 30-day option for additional shares.

Positive

• Net proceeds of approximately $140 million to White Mountains from the offering.
• Remaining equity stake in MediaAlpha valued at about $800 million.

Negative

• None.

HAMILTON, Bermuda, March 18, 2021 /PRNewswire/ -- White Mountains Insurance Group, Ltd. (NYSE: WTM) announced today that MediaAlpha, Inc. ("MediaAlpha") priced a secondary offering of 7,000,000 shares of its Class A common stock by certain selling stockholders. The shares of Class A common stock are being sold to the public at a price of $46 per share.  MediaAlpha is not offering any shares of Class A common stock in the offering.

In the offering, 3,122,460 shares are being offered by White Mountains.  Following the completion of the offering, White Mountains will own 17,409,742 MediaAlpha shares, representing a 27% fully-diluted ownership interest.  At the secondary offering price, the value of White Mountains's remaining equity ownership stake is approximately $800 million.  White Mountains will receive net cash proceeds of about $140 million from the offering.

The offering is expected to close on March 23, 2021, subject to customary closing conditions.  In connection with the offering, the underwriters will have a 30-day over-allotment option to purchase up to an additional 469,744 shares offered by White Mountains. 

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 and the Bermuda Stock Exchange under the symbol WTM.

CONTACT:  Todd Pozefsky
(203) 458-5807

View original content:http://www.prnewswire.com/news-releases/mediaalpha-prices-secondary-offering-301250739.html

SOURCE White Mountains Insurance Group, Ltd.

FAQ

What is the price of MediaAlpha's secondary offering on March 18, 2021?

The price of MediaAlpha's secondary offering is $46 per share.

How many shares is White Mountains selling in the MediaAlpha offering?

White Mountains is selling 3,122,460 shares of MediaAlpha.

What will be White Mountains' ownership percentage in MediaAlpha after the offering?

White Mountains will retain a 27% fully-diluted ownership interest in MediaAlpha.

When is the expected closing date for the MediaAlpha offering?

The offering is expected to close on March 23, 2021.

What are the expected net cash proceeds from the MediaAlpha stock offering?

The expected net cash proceeds to White Mountains from the offering are about $140 million.