Donegal Group Inc. and Donegal Mutual Insurance Company Purchase Shepard Shares
December 22 2015 - 02:00PM
Donegal Group Inc. (“DGI”) (NASDAQ:DGICA) (NASDAQ:DGICB) today
reported that it, along with Donegal Mutual Insurance Company
(“Donegal Mutual”), the holder of majority voting control of DGI,
purchased 3,675,000 shares of DGI Class A common stock and 400,000
shares of DGI Class B common stock from Gregory M. Shepard at a
price of $16.50 per Class A share and $23.50 per Class B share. DGI
purchased 2,000,000 of the Class A shares, and Donegal Mutual
purchased 1,675,000 of the Class A shares and all 400,000 of the
Class B shares. As a result of these purchases, Donegal Mutual
holds approximately 73.8% of the total voting power of DGI’s common
stock outstanding, and Mr. Shepard owns no shares of either class.
DGI and Donegal Mutual utilized a combination of cash on hand
and borrowings on their respective lines of credit at M&T Bank
to fund the purchases.
Donald H. Nikolaus, Chairman of the Board of DGI and President
and Chief Executive Officer of Donegal Mutual, commented, “We
believe the purchases represent a positive step forward for all of
the constituencies of the Donegal organization and will enable us
to focus on our long-term business strategies.”
About Donegal Group Inc.
Donegal Group Inc. is an insurance holding company with
insurance subsidiaries offering personal and commercial property
and casualty lines of insurance in 21 Mid-Atlantic, Midwestern, New
England and Southern states. The insurance subsidiaries of DGI and
Donegal Mutual conduct business together as the Donegal Insurance
Group. The Donegal Insurance Group has an A.M. Best rating of A
(Excellent). Donegal Mutual and DGI together own Donegal Financial
Services Corporation, a grandfathered unitary savings and loan
holding company that owns Union Community Bank, a state savings
bank.
DGI's Class A common stock and Class B common stock trade on
NASDAQ under the symbols DGICA and DGICB, respectively.
We base all statements contained in this release that are not
historic facts on our current expectations. These statements are
forward-looking in nature (as defined in the Private Securities
Litigation Reform Act of 1995) and involve a number of risks and
uncertainties. You should not place undue reliance on any such
forward-looking statements. We disclaim any obligation to update
such statements or to announce publicly the results of any
revisions that we may make to any forward-looking statements to
reflect the occurrence of anticipated or unanticipated events or
circumstances after the date of such statements.
For Further Information:
Jeffrey D. Miller
Executive Vice President and Chief Financial Officer
Phone: (717) 426-1931
E-mail: jeffmiller@donegalgroup.com
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