-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, CI62qwfJsE+v/bY3UTBrqtuFwxg6J/GiSjlfNaxb/cRR3c5/bLMfUCBif4x8S7XD IQyzSmi2Wl8h6NRTwevoEA== 0000000000-05-000080.txt : 20060316 0000000000-05-000080.hdr.sgml : 20060316 20050103105520 ACCESSION NUMBER: 0000000000-05-000080 CONFORMED SUBMISSION TYPE: UPLOAD PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20050103 FILED FOR: COMPANY DATA: COMPANY CONFORMED NAME: AMERINST INSURANCE GROUP LTD CENTRAL INDEX KEY: 0001065201 STANDARD INDUSTRIAL CLASSIFICATION: INSURANCE CARRIERS, NEC [6399] IRS NUMBER: 980207447 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: UPLOAD BUSINESS ADDRESS: STREET 1: C/O USA RISK GROUP INC STREET 2: P O BOX 1330 CITY: MONTPELIER STATE: VT ZIP: 05601 BUSINESS PHONE: 8022295042 MAIL ADDRESS: STREET 1: C/O USA RISK GROUP INC STREET 2: P O BOX 1330 CITY: MONTPELIER STATE: VT ZIP: 05601 LETTER 1 filename1.txt December 30, 2004 Via Facsimile (312) 827-8000 and U.S. Mail Mark H. Berens Bell, Boyd & Lloyd, LLC 70 West Madison Street Suite 3100 Chicago, IL 60602 Re: Amerinst Insurance Group, Ltd. Schedule TO-I filed December 17, 2004 SEC File No. 5-78254 Dear Mr. Berens: We have reviewed the filing listed above and have the following comments. All defined terms have the same meaning as in your disclosure document, unless otherwise indicated. Schedule TO-I 1. We note that you describe the offer as being made through your indirect wholly owned subsidiary, Amerinst Investment Company, Ltd. However, since Investco is the actual purchaser of securities tendered in this offer and will pay for those shares through its own funds, it must be listed as a filing person on the cover page of this Schedule, and there must be a separate signature for Investco on the Schedule. In addition, the Offer to Purchase must be revised as necessary to provide all of the required bidder disclosure as to Investco individually. Please revise. Offer to Purchase - Exhibit (a)(1)(i) 2. Generally explain the reasons for the structure of the offer. Specifically, why are you using Investco as a bidder, versus simply repurchasing the shares yourself? The effect of such repurchase by Investco allows the shares to remain outstanding and to be voted by your wholly-owned subsidiary. This could effectively hinder or prohibit a change in control transaction not approved by you, at a time when a dissident shareholder proposes to take the company private. Please discuss in your disclosure document. Your revised disclosure should specifically and prominently state (such as in the Summary Term Sheet and elsewhere, as appropriate) the percentage of shares that may be owned by Investco and other affiliates of AmerInst, such as AmerInst Investment Company, Ltd., after the offer and that will remain outstanding and may be voted under Bermuda law. Summary Term Sheet, page 1 3. See comment 2 above. Please provide more specific disclosure about the potential effect of this share repurchase. For example, how might it affect Mr. Breitweiser`s ability to take the company private or to gain control of its Board? How does the price range proposed in this offer compare to his anticipated offer price, as stated in his December 13, 2004 letter to the Board of Directors? 4. Consider adding disclosure in this section concerning the patent for which you have applied and which, if granted, may result in significant increases in revenues going forward. See comment 6 below. In what order will you purchase the tendered shares?, page 3 5. In the last sentence on page 3, you reserve the right to purchase all shares tendered by holders who will become odd lot holders as a result of pro ration in the offer. We do not believe that this approach comports with the requirements of Rule 13e-4(f)(3), which requires you to pro rate if your offer is oversubscribed. Rule 13e- 4(f)(3)(i) allows you to modify the pro ration process for those shareholders who are odd lot holders at the outset of the offer. Please revise or advise why you believe this process complies with applicable law. Developments with Respect to our Business, page 13 6. Clarify that shareholders tendering into this offer and whose shares are purchased will not participate in the future anticipated "very substantial increase in the net income" of AmerInst even if the relevant patent is granted. Conditions of the Offer, page 20 7. We note that the scope of many of your offer conditions is relatively ill-defined, and many of the conditions are subjective in nature. For example, the benefits you expect to receive from this offer are not apparent to the reader. Given these facts, please be aware that if you believe events occur that implicate one or more of the offer conditions, you may not wait until the end of the offer to decide how to proceed. Rather, you must promptly inform shareholders and the market how you will handle the fact that an offer condition has been "triggered." Please confirm your understanding in your response letter. Certain Legal Matters; Regulatory Approvals, page 29 8. Language here intimates that you may not receive required regulatory approvals from the Bermuda Monetary Authority until after the expiration of the offer. However, this contradicts disclosure in the "Conditions" section on page 21 stating that such approval must be obtained on or before expiration. Please clarify. Closing Comments We urge all persons who are responsible for the accuracy and adequacy of the disclosure in the filing reviewed by the staff to be certain that they have provided all material information to investors. Since AmerInst Insurance Group, Ltd. (and the other filing party or parties you add in response to our comments above) and their management teams are in possession of all facts relating to the disclosure in the Schedule TO, they are responsible for the accuracy and adequacy of the disclosures they have made. In responding to our comments above, please provide, in writing, a statement from all filing persons acknowledging that: * They are responsible for the adequacy and accuracy of the disclosure in the filings; * Staff comments or changes to disclosure in response to staff comments do not foreclose the Commission from taking any action with respect to the filings; and * They may not assert staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the United States. In addition, please be advised that the Division of Enforcement has access to all information you provide to the staff of the Division of Corporation Finance in our review of your filings or in response to our comments on your filings. Please revise your offer materials to comply with the comments above. If you do not agree with a comment, tell us why in a supplemental response letter that you should file via EDGAR as correspondence with your revised proxy statement. The letter should note the location in your amended disclosure document of changes made in response to each comment or otherwise. Please be aware that we will likely have additional comments after reviewing your amendment. If you would like to contact me, please do not hesitate to do so at (202) 942-1773. Sincerely, Christina Chalk Special Counsel Office of Mergers and Acquisitions ?? ?? ?? ?? Mark H. Berens, Esq. December 30, 2004 Page 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549-0303 DIVISION OF CORPORATION FINANCE -----END PRIVACY-ENHANCED MESSAGE-----