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Ambac and Oaktree Extend Financial Guarantee Business Pact to 2025
ByAinvest
Monday, Jul 7, 2025 10:37 am ET1min read
Ambac Financial's stock rose 11% after extending the stock purchase agreement with Oaktree Capital Management for the sale of its legacy financial guarantee business. The agreement was initially set to expire on July 3, 2025, but has now been extended to December 31, 2025. The extension allows Ambac to continue to work with Oaktree to sell off its financial guarantee business.
Ambac Financial Group, Inc. (NYSE: AMBC) announced an extension to the stock purchase agreement for 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. (Oaktree). The initial agreement was set to expire on July 3, 2025, but has now been extended to December 31, 2025 [1]. This extension allows Ambac to continue working with Oaktree to finalize the transaction.Ambac and Oaktree remain fully committed to closing the deal, with Oaktree continuing to collaborate with the Wisconsin Office of the Commissioner of Insurance (OCI) to satisfy remaining closing conditions and obtain final regulatory approval [2]. The extension also includes additional agreements, such as a conversion right for a warrant to purchase Ambac common stock and arrangements regarding Ambac's lease obligations and expense allocations to AAC prior to the transaction's closure.
Claude LeBlanc, President and CEO of Ambac, stated, "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." Greg Share, Oaktree Managing Director, added, "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."
Ambac's stock rose 11% following the announcement, reflecting investor confidence in the company's strategic transformation and the progress made in the transaction [3].
References:
[1] https://www.morningstar.com/news/business-wire/20250707668576/ambac-financial-group-and-oaktree-announce-an-extension-to-the-stock-purchase-agreement-for-the-financial-guarantee-business
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L6N3T40FC:0-ambac-extends-deadline-for-sale-of-financial-guarantee-businesses-to-oaktree-to-december/
[3] https://www.businesswire.com/news/home/20250707668576/en/Ambac-Financial-Group-and-Oaktree-announce-an-extension-to-the-stock-purchase-agreement-for-the-Financial-Guarantee-business
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