Gregory Shepard Offers $33-$37/Share for Donegal Group
Gregory Mark Shepard announced today that he has sent a letter to the Boards of Directors of Donegal Group Inc. (NASDAQ: DGICA) (NASDAQ: DGICB) and Donegal Mutual Insurance Company ("Donegal Mutual") proposing an amicable transaction.
Mr. Shepard has disclosed this proposal in an amendment to his Schedule 13D, which was filed today and is available at www.sec.gov.
In the amicable transaction proposed in his letter, Mr. Shepard would offer to purchase the 957,136 shares of Class B Common Stock of Donegal Group ("Class B Shares") that are not already owned by him or Donegal Mutual at a negotiated price within a range of $33 - $37 per share, and a mutual property and casualty insurance company would purchase the 9,021,350 shares of Class A Common Stock of Donegal Group ("Class A Shares") that are not already owned by him or Donegal Mutual. Mr. Shepard knows of two U.S.-based mutual property and casualty insurers, both of which are much larger than Donegal Group and Donegal Mutual and rated A or higher by A.M. Best, who would be interested in such a transaction.
Alternatively, if Donegal Group and Donegal Mutual elect to enter into a