Proxy adviser Glass Lewis backs Third Point's Malibu deal

(Reuters) -Glass Lewis has recommended shareholders in Third Point Investors Ltd vote in favor of a proposal to buy Malibu Life Reinsurance SPC, a deal that would turn billionaire Dan Loeb's investment firm into a reinsurance company.

Shareholders are set to vote on the deal on August 14, according to a report from proxy adviser Glass Lewis on Friday.

TPIL, which listed on the London Stock Exchange in 2007, said in May it plans to acquire Malibu, a life annuity reinsurer launched in 2024 by Loeb.

The Strategy Committee of TPIL, formed to evaluate strategic options, believes Malibu offers a scalable operating model, strong outsourced partnerships, and exposure to the U.S. fixed annuity market, the Glass Lewis report said.

Third Point did not immediately respond to a Reuters request for comment on the recommendation.

Earlier this week, Institutional Shareholder Services recommended voting against the deal, arguing it would fundamentally alter TPIL's investment profile without offering minority shareholders an exit option at a fair price for their entire holdings.

Glass Lewis said on Friday Third Point's voting power in the combined entity will remain below 30%, limiting its influence over shareholder decisions.

"Third Point has committed to subscribe $30 million in new equity capital on NAV (net asset value) terms as part of the transaction, a move that, in our view, demonstrates confidence in the long-term prospects of Malibu and the combined platform," the proxy adviser said.

(Reporting by Aatrayee Chatterjee in Bengaluru; additional reporting by Dawn Kopecki; Editing by Devika Syamnath)