ALLENTOWN, Pa., Sept. 5 PA-PennTreaty-to-sell
ALLENTOWN, Pa., Sept. 5 /PRNewswire-FirstCall/ -- Penn Treaty American
Corporation (NYSE: PTA) today announced that it has entered into a non-binding
letter of intent to sell its wholly-owned subsidiary, United Insurance Group
Agency, Inc. ("UIG"), at a price above book value. The Company will not
disclose the identity of the purchaser or the terms of the offer until
definitive documentation is completed.
Headquartered in Milford, Michigan, UIG distributes life and health
insurance products through captive agency and brokerage operations throughout
the United States. The non-binding letter of intent provides for the
completion of due diligence and the preparation of definitive documentation
within approximately 30-45 days.
Certain statements made by the Company in this press release may be
considered forward-looking within the meaning of the Private Securities
Litigation Reform Act of 1995. Although the Company believes that its
expectations are based upon reasonable assumptions within the bounds of its
knowledge of its business and operations, there can be no assurance that the
Company will enter into a definitive agreement, that the transaction will be
consummated, or that the actual purchase price will exceed book value. For
additional information and risks related to the Company, please refer to its
reports filed with the Securities and Exchange Commission.
SOURCE Penn Treaty American Corporation
