AEL - American Equity agrees to Brookfield's $4.3B takeover offer

2023-07-05 07:36:42 ET

American Equity Investment Life Holding Co. ( NYSE: AEL ) accepted a $4.3 billion cash and stock takeover offer from Brookfield Reinsurance ( NYSE: BNRE ). AEL rose 2.4% in premarket trading.

Brookfield Reinsurance ( BNRE ) agreed to buy the shares it doesn't already own for $55 a share in cash and stock, according to a statement on Wednesday.

BNRE agreed to pay $38.85 per share in cash and Brookfield Asset Management ( NYSE: BAM ) class A limited voting shares having a value equal to $16.15 based on the unaffected 90-day VWAP as of June 23. The per-share price represents a 35% premium to AEL's, closing price as of June 23, before a Bloomberg report on a potential deal.

Under the terms of the deal, AEL has agreed to suspend the payment of dividends on its common stock through the closing of the transaction. The deal is expected to close in the first half of 2024. Following closing, Brookfield Reinsurance ( BNRE ) expects to maintain AEL’s headquarters in Des Moines, Iowa.

The deal announcement comes after Brookfield Reinsurance (BNRE ) announced the $55 per share cash and stock offer to AEL last Tuesday. The transaction follows after Prosperity Group Holdings, which was backed by hedge fund Elliott Investment Management, withdrew its proposal to acquire AEL for $45.00 per share in February after AEL rebuffed the offer in December.

More on American Equity:

• American Equity Investment downgraded at Raymond James on valuation
• American Equity takeout price in the low $50s is warranted - analyst
• The Rise of Annuities: How American Equity Is Capitalizing
• American Equity enters into accelerated $200M buyback agreement
• American Equity Investment stock dives after Prosperity withdraws takeover proposal

For further details see: